Redundancies at BMI
Last week it was announced that over 1,200 jobs at BMI will be lost; the redundancies come as BMI is taken over by IAG. British Airways commented that the job losses are regrettable, but because of the current economic climate BMI is currently haemorrhaging £3 million every week. Therefore, without the merger BMI would almost certainly have closed, leaving over 2,700 employees without job.
In theory, this means that 1,500 jobs have been saved by this business strategy, and more could potentially be created when/if the company becomessuccessful again.
British Airways also remarked that the merger is actually good news for their customers, as in due course it will offer them new routes, new destinations and new flight times.
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