BA launches planning project

BA has launched a project called Future Size and Shape which will ascertain the future direction of the airline.

As well as considering if more job cuts are needed, the overhaul will look at no-frills airlines such as Ryanair and see if BA - which earlier this year sold its budget service Go - can adopt any of their practices.

But Mr Eddington added that BA would not abandon long-haul flights and would continue to concentrate ‘‘on the whole of the sector’’.

BA is also looking at the possibility of consolidation within the industry.

The airline sector is heavily regulated by governments, which have put strict controls on closer links - including possible mergers and takeovers - between airlines.

Mr Eddington said he was hopeful: ‘‘Consolidation is long overdue and Brussels is taking the right regulatory view.’’

He said September 11 had the potential to speed up the process ‘‘quite rapidly’’, adding: ‘‘Brussels is taking a sensible line realising that consolidation needs to take place and they need to make sure that large dollops of state aid don’t stop that happening.’’