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Demonstrators from the Unite union support striking British Airways cabin crew in London. British Airways, which is slashing costs and merging with Spanish rival Iberia in a bid to return to profitability, faces the latest disruption at a crucial time as the World Cup is about to start in South Africa. Image Credit: AFP

London: British Airways cabin crew Saturday started their latest five-day strike in a long-running dispute which has so far cost the airline about £120 million (Dh642 million).

The strikes stem from BA's decision last November to cut cabin crew pay and alter staffing levels on its flights.

BA chief executive Willie Walsh and leaders of labour union Unite, which represents cabin staff, blame each other for a breakdown in communication.

BA is trying to reach a deal with Unite which will save £62.5 million a year to counter falling demand, volatile fuel prices and greater competition.

Unite said on Friday no talks to avert the strike were planned, while BA said the conciliation service ACAS was trying to arrange discussions between the two parties. Talks over the past six months have failed to yield a resolution, with the walkouts having caused BA to ground flights on 17 occasions so far.

Sticking point

The issue of travel allowances for cabin crew has become a serious sticking point in the conflict, which comes at a difficult time for BA. Last month, the airline announced a full-year loss of £531 million.

The latest strike took place less than a week before the start of the soccer World Cup in South Africa and followed a five-day stoppage which ended on Thursday. There was a four-day walkout last week and seven days of stoppages in March. With the World Cup in mind, BA said last week it would fly a full schedule to South Africa.

BA plans to operate 80 per cent of long-haul flights from London's Heathrow and 60 per cent of short-haul services from the airport during the latest strike. Flights from the capital's Gatwick and City airports are unaffected.

Analysts believe the strikes could put off previously loyal BA customers from flying with it in the future.

Traffic Slumps 12%

British Airways said passenger traffic tumbled almost 12 per cent last month after a strike by its 12,000 cabin crew grounded flights.

Europe's third-biggest carrier suffered a 13 per cent drop in economy traffic in May, while first- and business-class travel declined 6.5 per cent, it said in a statement yesterday. Negotiations with the Unite union aimed at resolving a dispute over staffing levels, travel benefits and pay were adjourned without a deal on June 1. No new date for talks has been set, and the strike is costing British Airways £7 million a day, the London-based company says.

— Bloomberg