BA 'prepared for staff action'

British Airways chief executive Willie Walsh said the carrier is prepared for a new round of walkouts by cabin crew after a vote…

British Airways chief executive Willie Walsh said the carrier is prepared for a new round of walkouts by cabin crew after a vote that ends today and won't intervene to help resolve union splits over the dispute.

"We're confident that with the contingency plan that we've developed, which includes training further people to serve as cabin crew, we will be able to continue flying," Mr Walsh said in New York. "The vast majority of our crew wants it over with."

Mr Walsh came close to a deal over pay and staffing levels for 11,000 flight attendants in November after five strikes spanning 22 days. Unite union general secretary Tony Woodley pulled back from the accord under pressure from the British Airlines Stewards and Stewardesses Association, which urged him to press for concessions including immediate restoration of travel perks for strikers and binding arbitration on disciplinary cases.

"Industrial action is something that's best avoided, but there are times when you feel you've got to take a stand against inefficiency and unreasonable union behavior," Mr Walsh said last night in response to questions from journalists, adding that splits within and between unions are not something that the British Airways' management is prepared to address.

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A month-long ballot of flight attendants on further action closes at midday, with Unite likely to announce the result sometime this afternoon, according to spokeswoman Pauline Doyle. The announcement comes as British Airways ends almost 25 years as a mainstay of the London stock exchange before completion of its merger with Iberia Lineas Aereas de Espana SA of  Spain.

Mr Walsh said in New York that he's not concerned about the results of the union poll and that many employees who voted to strike in the past actually worked on when the walkouts began.

Europe's third-largest airline will again tap other staff, including pilots, to take over cabin-crew duties in order to execute most short-haul flights if the strike goes ahead, he said, adding that long-distance routes will not be affected.

The London-based carrier also rented planes and crews to help cope during the earlier disputes.

The new business, International Consolidated Airlines Group SA, has a combined value of almost $10 billion, 417 planes and is targeting annual savings of €400 million in its fifth year. The company, which begins trading next week with its main listing in London under the IAG ticker, will form the basis for further takeovers, Mr Walsh reiterated yesterday.

"I think it's an excellent start," he said. "We've had a lot of airlines express an interest in IAG."

The Iberia merger will also provide an outlet for expansion as London's Heathrow airport approaches full capacity and the UK government declines to permit further growth.

British Airways' third runway will be in Madrid, Mr Walsh said, adding that European concern about global warming will hand traffic to hubs and airlines in the Middle East and Asia, where regimes are more interested in fostering economic growth.

Bloomberg