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British low-cost airline BMI said today it will cut at least 600 jobs, scrap loss-making routes and reduce its fleet of jets to help cope with falling demand and the economic downturn.
The company, owned by German carrier Lufthansa AG, said even more jobs could go as part of a restructuring plan to cut costs and boost productivity.
Like many airlines around the world, BMI has been hit by weak demand, volatile fuel prices and increased competition.
"The airline industry is facing the challenges of a downturn in demand and the worst recession in the UK since records began," BMI said. "Further job cuts cannot be ruled out."
The company, which is the second-biggest carrier at London's Heathrow Airport and employs 4,500 people, will reduce the number of aircraft in its BMI Mainline unit by nine from the current 39.
Lufthansa, which took over the airline in July, said it supports the restructuring plan and hopes BMI will be able to expand when the economic situation improves.
The airline will suspend all flights from London Heathrow to Brussels, Tel Aviv in Israel, the Ukrainian capital Kiev and Aleppo in Syria from January 2010. Flights from London to Amsterdam will end in March. Seasonal flights from Heathrow to Palma in Majorca and Venice will not resume next summer.
Unite, Britain's biggest union, said the timing of the cuts a month before Christmas was insensitive and cast doubt on other areas of BMI's business.
"Unite understands the need to cut costs, but job losses seem to be the kneejerk reaction," said Brian Boyd, the union's national officer for civil aviation.
Airline pilots' union BALPA said it would work with bmi to try to avoid compulsory job cuts.
"We understand the company's situation," said BALPA General Secretary Jim McAuslan. "They have been hit by the downturn in the economy like other airlines."
The International Air Transport Association, the trade body, said earlier this month that it expects airlines to lose $11 billion on a net basis in 2009.
