Last checked at 
(Adds union response, shares, background)
LONDON, Sept 23 (Reuters) - British Airways said it was
scrapping most short-haul operations at London's no.2 airport
Gatwick, blaming pilots for rejecting a plan to set up a new
low-cost unit to better compete against easyJet as
flying returns after the pandemic.
BA, owned by parent IAG, shifted most of its flying
to its main hub at Britain's biggest airport Heathrow during
COVID-19 as the pandemic decimated its revenues.
It had said it would only rebuild its European network from
Gatwick, where easyJet is the biggest airline, if it could make
it profitable.
The airline could now sell its portfolio of short-haul slots
at the airport. Hungarian low-cost airline Wizz Air,
for example, has long stated its interest in building a bigger
presence at Gatwick, south of London.
BA said on Thursday it was disappointed that pilots union
BALPA had rejected its plan for the subsidiary, which would have
been British Airways branded.
"After many years of losing money on European flights from
the airport, we were clear that coming out of the pandemic, we
needed a plan to make Gatwick profitable and competitive," BA
said.
BALPA said despite its best efforts, it was unable to agree
revised terms that were acceptable to its members.
"BALPA remains open to future negotiations with British
Airways to address our members' concerns with the proposal for
LGW short-haul or about any other part of the business," Acting
General Secretary Martin Chalk said.
Shares in IAG were trading down 2% at 171 pence.
British Airways and rivals like Air France and Lufthansa
face a slower recovery from the pandemic than low-cost operators
because demand for long haul remains far behind short haul.
BA said its operations at Gatwick would be limited to a
small number of domestic services connecting to long-haul
flights.
"We will pursue alternative uses for the London Gatwick
short-haul slots," it said.
(Reporting by Sarah Young, Editing by Paul Sandle and Kate
Holton)
