BA and Project Columbus
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BA and Project Columbus
BA staff could go on strike after a leaked memo showed the company is planning a major shake-up in the New Year that will include salary cuts and performance-related pay.
Details of the shake-up – codenamed “Project Columbus” by BA – are set out in a leaked confidential internal document. “Cabin crew costs at LHR are uncompetitive when compared against our main airline competitors,” according to the leaked memo. And “complex and restrictive cabin crew agreements” are creating “a barrier to change” and “hamper efficiency”. The airline also aims to replace existing agreements and bring in performance-related pay. New staff will be put automatically on to the new terms and conditions.
It aims is to “remove the complexity and inefficiency of current LHR cabin crew agreements” and attract staff at “competitive cost”. The British Airline Stewards and Stewardesses Association - part of the Unite union - has urged members to 'resist' the plans. It says that means existing staff will be left to 'wither on the vine'.
BA also intends to change the airline's culture by making it more skills and merit based "enabled through performance-related pay and merit-based promotion". A BA spokesman blamed the worst trading environment the industry has faced on the new measures. “We have to offset these challenges and identify areas across the company where we can reduce costs.”
How novel; to pay a person on skills and merit. Is that not the normal way people get paid in every other industry? If BA's staff go on strike as is threatened, WW may as well fire the lot. Looks like he would be better off with just about any other person wanting a job. The world is full of such people, and working for BA would be seen by many as attractive.
Details of the shake-up – codenamed “Project Columbus” by BA – are set out in a leaked confidential internal document. “Cabin crew costs at LHR are uncompetitive when compared against our main airline competitors,” according to the leaked memo. And “complex and restrictive cabin crew agreements” are creating “a barrier to change” and “hamper efficiency”. The airline also aims to replace existing agreements and bring in performance-related pay. New staff will be put automatically on to the new terms and conditions.
It aims is to “remove the complexity and inefficiency of current LHR cabin crew agreements” and attract staff at “competitive cost”. The British Airline Stewards and Stewardesses Association - part of the Unite union - has urged members to 'resist' the plans. It says that means existing staff will be left to 'wither on the vine'.
BA also intends to change the airline's culture by making it more skills and merit based "enabled through performance-related pay and merit-based promotion". A BA spokesman blamed the worst trading environment the industry has faced on the new measures. “We have to offset these challenges and identify areas across the company where we can reduce costs.”
How novel; to pay a person on skills and merit. Is that not the normal way people get paid in every other industry? If BA's staff go on strike as is threatened, WW may as well fire the lot. Looks like he would be better off with just about any other person wanting a job. The world is full of such people, and working for BA would be seen by many as attractive.
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Not at all surprised! Any CEO worth his salt would have to look at emergency measures in the current economic climate - and I wouldn't be surprised if there weren't more significant changes on the horizon. BA can't be expected to compete effectively whilst having costs above those of competitors. I would imagine that the changes would have to be made quickly, and could be quite painful.
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ba and columbus
well he got rid of the regions and has had a go at gatwick/perhaps it was just a matter of time before he took on the sharp end of the business/maybe hes trying to do what he did at lingus
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The leaked memo also states that WW LHR is highly productive when running to plan but inflexible when not. Rather than destroy one of his assets W Walsh should perhaps look at the basics and ensure his company is able to run to plan.
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Willie Walsh can't control the weather, but maybe he could persuade the long haul cabin crew not to demand two local nights off when their aircraft diverts to Cardiff because of weather delays at Heathrow?
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My sister works with BA since 1996.
I can understand if BA wants to cut costs, especially at this time and mixed flying has also shown to be effective (most airlines also seem to do it). She came home from HKG the other day and that trip was probably worth at least £500. They have around 13 CC (not including the ICC) on each flight (three daily flights).
That's £6 500 per flight. £19 500 for all daily flights. £136 500 per week. And this is only for one destination!
Sorry to be a bit harsh. But, those numbers are fascinating and it does make sense if they want to introduce a new fleet with new T&C to cut costs.
I can understand if BA wants to cut costs, especially at this time and mixed flying has also shown to be effective (most airlines also seem to do it). She came home from HKG the other day and that trip was probably worth at least £500. They have around 13 CC (not including the ICC) on each flight (three daily flights).
That's £6 500 per flight. £19 500 for all daily flights. £136 500 per week. And this is only for one destination!
Sorry to be a bit harsh. But, those numbers are fascinating and it does make sense if they want to introduce a new fleet with new T&C to cut costs.
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can anyone post what WW earns and what the respective CEO's at virgin, cathay, singapore, lufthansa, AF/KLM and emirates earn? possibly enlightening.
A dash denotes no info in one year only.
Walsh - BA (GBP 2004-2007):
Salary - 548,000 611,000 679,000
Bonus - 135,000 - -
Total Annual Cash Compensation - 683,000 611,000 679,000
Other Annual Compensation - - - -
Total Short Term Compensation - 683,000 611,000 679,000
Long Term Incentive Plan - - - -
All Other Compensation - 69,000 14,000 22,000
Restricted Stock Awards - - - -
Total Calculated Compensation - 887,000 625,000 701,000
As Reported Total compensation - - 625,000 701,000
Other Compensation - 204,000 14,000 22,000
Harrison - easy (GBP 2004-2007)
Salary - - 450,000 540,000
Bonus - - 900,000 997,000
Total Annual Cash Compensation - - 1,350,000 1,537,000
Total Short Term Compensation - - 1,350,000 1,537,000
All Other Compensation - - 37,000 38,000
Total Calculated Compensation - - 1,387,000 1,575,000
As Reported Total compensation - - - 1,537,000
Other Compensation - - 37,000 38,000
Joyce - Qantas (AUD 2004-2007)
Salary 532,273 608,066 778,646 1,092,614
Bonus 324,000 280,275 880,592 1,207,000
Total Annual Cash Compensation 856,273 888,341 1,659,238 2,299,614
Total Short Term Compensation 856,273 888,341 1,659,238 2,299,614
All Other Compensation 406,067 238,346 366,153 95,800
Restricted Stock Awards - 296,843 - -
Total Calculated Compensation 1,418,599 1,423,530 2,663,962 2,395,414
Option Awards - 296,843 638,571 -
As Reported Total compensation 1,418,599 1,423,530 2,663,962 2,395,414
Other Compensation 562,326 535,189 1,004,724 95,800
Emirates - not disclosed
Virgin - not disclosed
Tyler - Cathay (HKD 2004-2007)
Salary 2,400,000 - 2,964,000 3,392,000
Bonus 1,505,000 - 2,903,000 3,289,000
Total Annual Cash Compensation 3,905,000 - 5,867,000 6,681,000
Other Annual Compensation 294,000 - - -
Total Short Term Compensation 4,199,000 - 5,867,000 6,681,000
Long Term Incentive Plan - - - -
All Other Compensation 3,464,000 - 4,261,000 4,337,000
Restricted Stock Awards - - - -
Total Calculated Compensation 7,663,000 - 10,128,000 11,018,000
As Reported Total compensation - - 10,128,000 11,018,000
Other Compensation 3,758,000 - 4,261,000 4,337,000
Mayrhuber - Lufthansa (EUR 2005-2007)
Salary 650,000 700,000 700,000
Bonus 955,350 1,137,788 1,400,000
Total Annual Cash Compensation 1,605,350 1,837,788 2,100,000
Total Short Term Compensation 1,605,350 1,837,788 2,100,000
All Other Compensation 37,220 103,140 107,847
Total Calculated Compensation 1,642,570 2,090,545 2,605,996
Option Awards - 149,617 398,149
As Reported Total compensation 1,642,570 2,090,545 2,605,996
Other Compensation 37,220 252,757 505,996
Spinetta - AF-KLM (USD 2004-2007)
Salary 425,200 - 612,720 600,240
Bonus - - 330,000 637,500
Director Fee - 31,000 24,000 31,000
Total Annual Cash Compensation 425,200 31,000 966,720 1,268,740
Other Annual Compensation - - - -
Total Short Term Compensation 425,200 - 942,720 1,237,740
Long Term Incentive Plan - - - -
All Other Compensation - - - -
Restricted Stock Awards - - - -
Total Calculated Compensation 425,200 31,000 966,720 1,268,740
As Reported Total compensation - 710,000 966,720 1,268,740
Other Compensation - - - -
Arpey - AA (USD 2004-2007)
Salary 518,837 526,620 581,534 656,500
Bonus - - - -
Non Equity Incentive Plan Compensation - - 225 50
Total Annual Cash Compensation 518,837 526,620 581,759 656,550
Other Annual Compensation - - - -
Total Short Term Compensation 518,837 526,620 581,534 656,500
Long Term Incentive Plan 130,061 - - -
All Other Compensation 200 250 39,769 36,146
Restricted Stock Awards - 327,960 8,558,878 3,103,550
Total Calculated Compensation 649,098 854,830 10,201,059 4,601,165
Option Awards - - 851,398 550,793
Change in Pension Plan/Non-Qualified Deferred Comp Earnings - - 169,255 254,126
As Reported Total compensation - - 10,201,059 4,601,165
Other Compensation 130,261 328,210 9,619,300 3,944,615
Estimated Payments in Event of Termination Without Cause - - - 12,264,726
Estimated Payments in Event of Change in Control - - - 24,918,205
Tilton - UA (USD 2004-2007)
Salary 756,832 605,625 687,083 850,000
Bonus 366,393 482,532 - -
Non Equity Incentive Plan Compensation - - 839,028 422,425
Total Annual Cash Compensation 1,123,225 1,088,157 1,526,111 1,272,425
Other Annual Compensation 27,910 17,822 - -
Total Short Term Compensation 1,151,135 1,105,979 687,083 850,000
Long Term Incentive Plan - - - -
All Other Compensation 8,481 9,036 210,959 155,968
Restricted Stock Awards - - 11,694,640 4,708,258
Total Calculated Compensation 1,159,616 1,115,015 23,809,557 10,314,769
Option Awards - - 10,377,847 4,178,118
As Reported Total compensation - - 23,809,557 10,314,769
Director’s All Other Compensation - - - -
Other Compensation 36,391 26,858 22,283,446 9,042,344
Estimated Payments in Event of Termination Without Cause - - - 16,325,006
Estimated Payments in Event of Change in Control - - - 18,037,537
Anderson - DAL (USD 2004-2007)
Salary - - - 200,000
Bonus - - - -
Director Fee - - - 16,667
Non Equity Incentive Plan Compensation - - - 289,560
Total Annual Cash Compensation - - - 506,227
Total Short Term Compensation - - - 200,000
All Other Compensation - - - 221,162
Restricted Stock Awards - - - 2,308,557
Total Calculated Compensation - - - 3,329,488
Option Awards - - - 293,542
Change in Pension Plan/Non-Qualified Deferred Comp Earnings - - - -
As Reported Total compensation - - - 3,329,488
Other Compensation - - - 2,823,261
Estimated Payments in Event of Termination Without Cause - - - 10,015,903
Estimated Payments in Event of Change in Control - - - 13,301,994
O'Leary - Ryan (EUR 2004-2007)
Salary 505,000 550,000 565,000 595,000
Bonus 127,000 200,000 365,000 560,000
Total Annual Cash Compensation 632,000 750,000 930,000 1,155,000
Other Annual Compensation - - - -
Total Short Term Compensation 632,000 750,000 930,000 1,155,000
Long Term Incentive Plan - - - -
All Other Compensation 49,000 58,000 62,000 63,000
Restricted Stock Awards - - - -
Total Calculated Compensation 681,000 808,000 992,000 1,218,000
As Reported Total compensation 681,000 808,000 992,000 1,218,000
Other Compensation 49,000 58,000 62,000 63,000
Kelly - LUV (USD 2004-2007)
Salary 322,436 404,719 416,860 424,065
Bonus 220,000 275,000 462,000 462,000
Non Equity Incentive Plan Compensation - - 620 2,089
Total Annual Cash Compensation 542,436 679,719 879,480 888,154
Other Annual Compensation - - - -
Total Short Term Compensation 542,436 679,719 878,860 886,065
Long Term Incentive Plan - - - -
All Other Compensation 41,065 68,980 96,541 95,939
Restricted Stock Awards - - - -
Total Calculated Compensation 583,501 748,699 1,405,883 1,301,438
Option Awards - - 429,862 317,345
As Reported Total compensation - - 1,405,883 1,301,438
Other Compensation 41,065 68,980 526,403 413,284
Parker - US Air (USD 2004-2007)
Salary 550,000 550,000 550,000 550,000
Bonus - - - -
Non Equity Incentive Plan Compensation - - 1,749,000 924,000
Total Annual Cash Compensation 550,000 550,000 2,299,000 1,474,000
Other Annual Compensation 5,268 81,963 - -
Total Short Term Compensation 555,268 631,963 550,000 550,000
Long Term Incentive Plan 687,500 1,787,500 - -
All Other Compensation 3,853 3,853 47,947 89,772
Restricted Stock Awards - 3,260,437 1,657,930 1,941,585
Total Calculated Compensation 1,246,621 5,683,753 5,357,582 5,444,996
Option Awards - - 1,352,705 1,939,639
As Reported Total compensation - - 5,357,582 5,444,996
Other Compensation 696,621 5,133,753 3,058,582 3,970,996
Estimated Payments in Event of Termination Without Cause - - - 8,676,285
Estimated Payments in Event of Change in Control - - - 8,676,285
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Willie Walsh can't control the weather, but maybe he could persuade the long haul cabin crew not to demand two local nights off when their aircraft diverts to Cardiff because of weather delays at Heathrow?
Where did you get that little gem from?
Where did you get that little gem from?
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whilst the point is made of say £500 allowances for a HKG trip, remember that the basic salary of BA longhaul cabin crew is c£14k after 8 years service.....so the allowances purely take their earnings up to a sensible level.....
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whilst the point is made of say £500 allowances for a HKG trip, remember that the basic salary of BA longhaul cabin crew is c£14k after 8 years service.....so the allowances purely take their earnings up to a sensible level.....
The ability of crew to have a different decision from flight crew on whether to fly or not post-delay is also a quite ridiculous situation, reminiscent of 1970s union thinking.
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The quoted £500 for a HKG trip is well below the reality. For a junior crew member the extras will include 2 box payments of £320+, overtime after 12:30 hours duty at about £45 per hour (about 4.5 hours), overnight allowance of another £40, and then meal allowances of about £350. The whole trip for a main crew member is worth closer to £1000 than £500.
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OzzieO - crew still insist on two local nights during disruption. It did not go unnoticed that during the recent disruption at BKK a rerouted jumbo left SIN empty (leaving behind lots of passengers) because the inbound crew from SYD had demanded two local nights.
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OzzieO - crew still insist on two local nights during disruption. It did not go unnoticed that during the recent disruption at BKK a rerouted jumbo left SIN empty (leaving behind lots of passengers) because the inbound crew from SYD had demanded two local nights.
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OzzieO - crew still insist on two local nights during disruption. It did not go unnoticed that during the recent disruption at BKK a rerouted jumbo left SIN empty (leaving behind lots of passengers) because the inbound crew from SYD had demanded two local nights.
