BA and Unite in court over plan to limit cabin crew numbers

British Airways reiterated concerns yesterday that it was facing a second year of record losses as it defended an action in the High Court against claims that its failure to negotiate over cuts to cabin crew numbers is unlawful.

The case is the latest instalment in the row between the group and the union Unite, which is rejecting BA's claim that it is able to change the number of cabin crew on its flights without first consulting staff.

The union, which is in the process of balloting members on strike action over the move, argues that the UK flag carrier is in breach of contract by unilaterally imposing the measures.

"Revenues are well down and it is essential we reduce costs to ensure our long-term survival," BA said. "[The case will] examine the issue of whether on-board crew levels form part of the individual contracts of cabin crew. We have always said we believe they do not." Unite did not return calls.

When the measures, which include using fewer cabin crew on long-haul flights out of Heathrow, were first put to staff at a mass meeting in July last year, they were unanimously rejected.

Unite last week opened a new ballot on strike action over the proposed changes. The first ballot, held at the end of last year, was judged to be unlawful after it included staff that planned to quit the airline.

The initial strike was to have taken place over Christmas. While a vote in favour of industrial action could be timed to coincide with the Easter holiday period, Unite last week specifically ruled out such a move. The result of the ballot will be known on 22 February.

BA is set to report another set of miserable results on Friday when its third-quarter results are published.

Analysts are expecting an operating loss of about £88m for the three months to the end of December, after the group reported a loss of £292m for the six months to the end of September last year. The company admits that its full-year losses are likely to dwarf the £401m pre-tax loss reported for the group's last financial year.