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BA union opposes Air Europa deal as clash over jobs heats up

Thu, 11th Jun 2020 13:12

LONDON, June 11 (Reuters) - The clash between British
Airways and its unions over 12,000 job losses intensified on
Thursday as the Unite union said it had approached the European
Commission to register its opposition to BA parent company's
acquisition of Air Europa.

Unite, which represents BA cabin crew, is battling the
airline over the job losses, refusing to attend consultation
meetings, and winning support from UK lawmakers who have
criticised British Airways for using "fire and rehire" tactics.

In the latest escalation, Unite said it was in talks with
the EU Commissioner for Competition about its opposition to the
acquisition by BA's parent IAG of Spanish airline Air
Europa.

"Unite is questioning why IAG is seeking to fire and rehire
the workforce at BA while its parent IAG is ploughing ahead with
buying an airline for over 1 billion euros ($1.1 billion),"
Unite Executive Officer Sharon Graham said in a statement.

Unite said it objected to the deal because it was
anti-competitive but directed its main anger at BA, which has
said it needs to shed jobs to make cost savings.

Another of IAG's airlines, Iberia, said last November it
would buy Air Europa for 1 billion euros but IAG's boss Willie
Walsh said in May that the group was evaluating whether to
proceed with the purchase or not.

The deal is currently being considered by competition
authorities. Unite said it intends to act as a third party
opposing the deal which could mean the deal faces additional
scrutiny.

IAG declined to comment on Unite's move on Thursday.

Last week, Walsh said in a television interview that because
of the way IAG is structured, Iberia's acquisition of Air Europa
would not have any impact on British Airways' finances or jobs.

"Not a single penny of British Airways money will go towards
that acquisition... it’s not going to in any way impact on the
people at British Airways," he told Sky News earlier in June.
($1 = 0.8805 euros)
(Reporting by Sarah Young; Editing by Susan Fenton)

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