By Steve Rothwell March 28 (Bloomberg) — British Airways Plc cabin crew were in the second day of a four-day strike with no sign of a deal being reached in the dispute over pay and staffing levels. About 60,000 customers will be prevented from flying with BA during the walkout, which began yesterday and runs through March 30, the company estimates. Cancellations will wipe out 30 percent of long-haul services from London’s Heathrow airport. The latest strike follows a three-day walkout by BA’s 12,000 cabin crew that ended on March 22 and cost 21 million pounds ($31 million), according to the carrier. Chief Executive Officer Willie Walsh last met with Unite union leader Tony Woodley on March 19 and efforts by arbiters to bring the men together for fresh talks have failed. “So far BA has done a pretty good job of maintaining a reasonable flying schedule,” said Gert Zonneveld , an analyst at Panmure Gordon in London with a “hold” rating on the stock. “Having said that, one of the things you can’t measure is that if people do book elsewhere, particularly the long-haul premium passengers, there is a good chance they may not return.” BA stock is up 19 percent since Feb. 22, when Unite said it had won a mandate for a strike, suggesting that for the moment investors are dismissing losses from the stoppages as a one-off cost and focusing instead on the airline’s improving traffic. Gatwick Boost The airline has expanded its schedule since the first walkout in anticipation of more crew reporting for work, allowing the operation of a full timetable at London Gatwick , its second-biggest hub. BA’s claims regarding staff turnout “should not be regarded as credible,” Unite said yesterday. BA was operating 70 percent of its long-haul schedule from Heathrow , compared with 60 percent during last week’s strike, the company said in a statement yesterday. As much as 55 percent of its short-haul flights were expected to depart, compared with 30 percent a week ago, it said. All told, BA expects to fly more than 180,000 people during the strike, or 75 percent of the booked total, the carrier said March 26. Of those affected by cancellations, 18 percent have been rebooked with other airlines or on different dates. The company will rent 11 planes and crews to supplement its fleet. Shelley Wills, a British Airways passenger whose flight to Hamburg was cancelled today, said the experience won’t stop her travelling with the carrier again. Wills, who plans to tour Germany over the Easter Holiday, was rebooked to Berlin, about 180 miles (290 kilometers) from her original destination. ‘Look Again’ “We’ve flown quite a lot on BA, and in the end it comes down to price and service,” Wills said by phone. “Our holiday hasn’t been completely ruined so I’d look at them again.” While British Airways has declined to provide an estimate of the likely total cost of the full seven days of the walkout, Unite estimates the loss at 100 million pounds. Brendan Barber , general secretary of the Trades Union Congress, which facilitated earlier talks, is still talking with both sides, though “things seem to be getting worse rather than better,” Rob Holdsworth, a spokesman for the umbrella group for U.K. unions, said in an interview March 26. Unite has reiterated that any settlement must include the restoration of travel perks that Walsh said this week had been forfeited by all striking workers, a move that may render unviable work journeys for 1,500 flight attendants employed in the U.K. but resident abroad. The CEO has also withdrawn a previous pay offer, saying any proposal must now be modified to account for the cost of the walkout. ‘Won’t Exist’ Walsh said “BA won’t exist in 10 years” unless it transforms the way it operates, in an interview with Britain’s Daily Telegraph newspaper published yesterday. “At the moment the damage has already been done, customers won’t be booking with BA during this period,” said Uwe Weinreich , an analyst at UniCredit in Munich with a “hold” recommendation on BA’s stock. “The union needs to recognize that they need to make concessions not just on pay but on working conditions, hopefully Willie Walsh will stay tough.” Travel in Britain may be disrupted further from April 6 when rail-maintenance and signaling workers plan to strike for four days in a dispute over job cuts and changes to working conditions, affecting the journeys of 3.5 million people in what would be the first shutdown of the network since 1994. The National Union of Rail, Maritime and Transport Workers, one of the two groups that called the walkout, said March 26 that it’s drawing up proposals to help resolve the dispute. At British Airways, Unite said it may call another strike after April 14 if no settlement is reached. To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net
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