BA chiefs cut their pay by 15%

British Airways executives have agreed to cut their pay by 15%.

They say it is a move to help the airline through difficult times in the aftermath of the terrorist attacks in the United States.

Chief executive Rod Eddington, who suggested the move, will have his £525,000 basic salary cut by £78,000.

All 12 executive directors have agreed to a 15% pay cut, while 600 senior managers are being asked to have their salaries reduced by 10%.

BA, which earlier today announced cuts in flights and a 9% reduction in capacity, says it hoped to save £2m in the current financial year through the salary savings.

Mr Eddington said: "Taking a pay cut is the right thing for the most senior people in the business to do at this time. It is part of their contribution as leaders to helping BA through this most difficult of times."

In a letter to managers, Mr Eddington said he was conscious how hard they were working to respond to the "extraordinary challenges" the airline industry was facing.

"Asking you to accept a pay cut is not something I do lightly. However, I believe that it is the appropriate step for us to take at this time as a collective act of leadership."

Starting salaries for senior managers is around £50,000.

BA said there were no plans to ask other staff, such as pilots or cabin crew, to take a pay cut.