§ Mr. Colvinasked the Minister for Trade whether he is satisfied with the progress British Airways is making in reducing its cost levels through disposals of surplus assets.
§ Mr. SproatI am very pleased with the measures British Airways have recently taken to reduce their fixed cost overheads through disposal of assets. During the last financial year British Airways sold 22 aircraft in addition to property and other equipment that was surplus to requirements, and the process has continued in the current financial year, including the sale of six TriStar aircraft to the Ministry of Defence. Such cost reductions are vital to ensuring the future prosperity of the airline.
§ Mr. Colvinasked the Minister for Trade what reductions British Airways has made in its manpower levels; and whether he is satisfied with the results.
§ Mr. SproatIn the period between August 1979 and the end of January 1983, British Airways' staff numbers have been reduced from over 58,000 to just over 39,000. This means that staff numbers are now only about two thirds of their 1979 levels. This is an extraordinarily successful achievement, which will greatly help the airline to operate competitively in the future.
§ Mr. Colvinasked the Minister for Trade whether he is satisfied with the improvements in productivity in British Airways which have occurred since May 1979.
§ Mr. SproatI am glad to say that between 1979 and the end of the first half of the current financial year productivity in British Airways—measured in terms of capacity offered per employee—has increased by 24 per cent.