British Airways mulling over folding short haul operations into new subsidiary

UK airline British Airways revealed that it was looking into folding its short-haul operations from London's Gatwick Airport into a new subsidiary as part of an effort to offset Covid-19 pandemic-induced declines in long-haul traffic.

Creating a new subsidiary would grant British Airways, which halted short-haul flights from Gatwick and moved them over to Heathrow Airport at the beginning of the coronavirus pandemic, an opportunity to lower its cost base and put it in a better position to compete against low-cost carriers easyJet and Ryanair in the short-haul space.

A British Airways spokesperson stated the airline was in talks with its union regarding the new subsidiary. However, according to the Wall Street Journal, BA and parent company IAG declined to comment any further amid the ongoing process.

As of 1545 BST, IAG shares were 0.098% at 163.58p.