LONDON - The boss of British Airways said its parent company IAG was burning through £178 million a week and could not guarantee its survival, prompting him to urge unions to engage over 12,000 job cuts.
British Airways and IAG did not attend a meeting with interior minister Priti Patel on Thursday , an IAG spokeswoman told Reuters in an emailed statement. Planes were grounded in March by the coronavirus crisis, forcing many airlines to cut thousands of staff as they struggle without revenues.In an internal letter to staff seen by Reuters, Alex Cruz, the chief executive of British Airways said the job losses were necessary as IAG's cash reserves would not last forever and the future was one of more competition for fewer customers.
Cruz said IAG, which also owns Aer Lingus, Iberia and Vueling, was getting through £178 million a week, meaning that it could not just sit out the crisis. The group had €10 billion of liquidity at the end of April.
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