Big job loss fears over IAG takeover of BMI
24.12.11
Hundreds of jobs could be lost as a result of the takeover of BMI by the owner of British Airways, an industry expert warned. BA parent International Airlines Group (IAG) announced a £172.5m deal to buy the troubled East Midlands based airline from Germany's Lufthansa this week. IAG chief executive Willie Walsh warned jobs would be cut over the next 3 years.
The loss-making airline employs 3800 people, including 1000 at East Midlands Airport and its headquarters nearby. IAG has already indicated that it does not want to keep BMI's regional and budget flights arms and Mr Walsh warned: ‘Given the scale of BMI's losses, there is an urgent need to restructure the business. Unfortunately, this will mean some job losses, but we will secure a significant number of high-quality jobs here in the UK.’
Professor Jim Saker, associate dean at Loughborough Business School, told a local newspaper: ‘If Willie Walsh is talking about job cuts at this early stage, then it is going to be big numbers - hundreds of job losses. IAG does not need an extra head office, and they are not going to relocate the jobs. Many of them will just go.’
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