(Adds background, detail)
LONDON, Sept 7 (Reuters) - British Airways' CEO said on
Tuesday that negotiations to set up a new low-cost subsidiary at
London's second biggest airport Gatwick were "advanced".
"We want to set up a subsidiary which has got a competitive
cost platform," BA CEO Sean Doyle told reporters at an event at
Heathrow Airport.
"We're in, you know, advanced negotiations to try and enable
that."
The airline, owned by Anglo-Spanish group IAG,
first announced plans for the new business focused on short-haul
flying on Friday, saying that it would be branded British
Airways and would offer the same standard of service.
BA has been evaluating its position at Gatwick after
stopping flights there during the pandemic and focusing on
operations at its main hub Heathrow, Britain and London's
busiest airport.
If negotiations with unions to set up the new unit fail,
then Doyle said BA would not be able to compete at Gatwick and
could look to sell its slots there.
"We would consider alternatives for the slot portfolio,"
Doyle said.
Asked if there would be further job losses at BA should the
new unit not go ahead, Doyle said that the move was about
opportunities. BA axed more than 10,000 staff at the height of
the COVID-19 crisis.
Doyle was at Heathrow to launch the airline's BA Better
World sustainability programme, providing further details of how
the airline plans to make progress towards its parent company's
longer term goal of achieving net zero carbon emissions by 2050.
During the global climate summit due to be held in Glasgow
later this year, BA said it would buy the equivalent amount of
lower-emissions sustainable aviation fuel for its London to
Scotland flights.
BA passengers will also have a greater opportunity to offset
their carbon footprint by directly paying for sustainable
aviation fuel should they wish.
(Reporting by Sarah Young. Editing by Andrew MacAskill and Jane
Merriman)