Heathrow airport has had to axe 150 head office staff so far this year and threatens that more jobs will go unless it has approval for a new runway.
Now a pay deal has been struck with 5,000 of its 7,000 workforce for pay increases which are below the rate of inflation. It is believed the deal will save Heathrow £30 million.
Management staff, however, was not part of the deal. The airport’s new CEO said managers at Heathrow, the UK’s largest airport, have had a pay freeze for the last two years.
The drive on savings comes after the Civil Aviation Authority told Heathrow to cut the charges it makes on airlines which use its facilities for five years from April this year. The two agreed that Heathrow’s cost-savings target of £600m.
Now the chief executive has issued a stark warning that further staff cuts are likely unless it is allowed to expand.
Heathrow is campaigning for a third runway but it is against Gatwick, which is lobbying to add a second air strip.
A decision on which airport will be favoured is to be taken only next summer.
