BA execs to take pay cuts

British Airways executives have agreed to cut their pay by up to 15% in a move to help the airline through ‘‘difficult times’’ in the aftermath of the terrorist attacks in the United States.

Their decision came yesterday, hours after the airline announced big cuts in services and a halt to flights between Heathrow and Belfast in the aftermath of the attacks.

A total of 190 flights will be scrapped or suspended, including 36 to the United States, leading to a 9% reduction in capacity.

The move was the latest blow to the aviation industry, which has seen more than 100,000 jobs axed and hundreds of planes grounded around the world since September 11.

The executive pay cuts will see chief executive Rod Eddington, who suggested the move, 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 said 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.’’

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

Roger Lyons, general secretary of the Manufacturing Science and Finance union, applauded the move.

‘‘This bucks the trend in business and is a very honourable position to take,’’ he said.

The airline is cutting 7,000 jobs and stopping or suspending 190 flights in response to the downturn in demand for air travel since the September outrage.

BA said its operating profit had been cut by £40m since September 11, including the cost of operational disruption to flights and implementing security measures.

BA, which will now close its base at Belfast International Airport with the loss of up to 160 jobs, said losses on the route had mounted to £38m in the past four years.

TBI, which owns Belfast airport, said BA’s decision would cost it up to £6.9m in lost profits.

The changes mean a reduction in flights from Heathrow to New York from six to five a day.

Services from Heathrow to Boston will be reduced from three to two a day, while flights to Washington will be cut from 19 to 14 a week.

The daily London Gatwick to New York service will be suspended and Gatwick services to San Diego and Houston will be reduced.

Middle East flights from Heathrow to Dubai, Bahrain, Doha, Abu Dhabi, Muscat, Jeddah and Kuwait will also be scaled back, while the suspension of the Heathrow-Islamabad service will continue.

Services from Gatwick to Stockholm, Zurich, Gdansk, Shannon, Cork,

Gothenburg, Rotterdam and Montpellier will be suspended and there will be cuts in flights to other European destinations.

The Gatwick-Lyon service will transfer to Heathrow, while the Heathrow-Bologna service will switch to Gatwick.

Passengers with tickets to travel on BA Heathrow-Belfast services after October 27 will be able to use them on bmi British Midland flights instead, bmi said.