London, Wednesday April 24, 2002: British Airways CitiExpress, a wholly owned subsidiary of British Airways, today unveiled the outcome of a Future Size and Shape review to ensure the profitability of its services at airports throughout the UK.

The strategy is designed to strengthen the airline’s position in the domestic and European short-haul market by developing an improved flying programme, and delivering a better service and more flights for air travellers across the network.

This will be achieved by:-
- Increasing capacity and services on key business routes - Simplifying the fleet and reducing the number of different aircraft types based at regional airports - More efficient use of assets - better matching aircraft size to local markets - The withdrawal of loss making services

The regional changes are in line with British Airways’ overall Future Size and Shape project announced in February 2002. Since then the airline has launched a range of new lower fares on UK domestic to London flights giving air travellers more choice and greater flexibility.

The measures announced today build on the integration process which resulted in the creation of BA CitiExpress on March 31st 2002. They are designed to reduce further the cost base of the regional operation and deliver annual savings of £20 million by 2004.

The net result of simplifying the business and removing complexity from the operation will mean employing the equivalent of 500 fewer people during the next
two years.

The changes to employee numbers in BA CitiExpress as a result of Future Size and Shape will be the subject of consultation with the company’s trade unions and representatives.

David Evans, British Airways General Manager UK Business said: “We now have the framework to develop our business and deliver the required cost savings. We are laying the platform for growth by getting our business in shape.

“This will provide us with a clear business direction for our staff and our customers. We will have the right aircraft at the right time on the right routes, and, where the business demands, we will have new services and extra frequency.”

As a result of some aircraft types being consolidated at specific regional airports, the number of crew reporting bases (where cabin and flight crew originate for flights) will reduce to 12 from15.

This will affect Aberdeen, Belfast and Jersey crew reporting bases.

The manpower equivalent savings will be achieved by 2004 in Flight Operations (48), Cabin Services (233), Engineering (52), Ground Services (8) and other head office and support staff (170).

This represents a 20 per cent reduction in manpower since the start of the integration process which began in 2001.

The fleet and network changes will result in an overall capacity reduction, measured in ASKs (Available Seat Kilometres), of eight per cent.

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