British Airways is considering creating a new, short-haul low-cost subsidiary at London’s Gatwick airport (LGW) in an effort to counteract COVID-19-induced losses in long-haul traffic.

During the early days of the pandemic, British Airways ceased their short-haul flights from Gatwick and shifted them to the airline’s base at London Heathrow Airport (LHR). 

This plan to subsidiarize can provide British Airways an opportunity to lower its cost base and compete more effectively in the intra-European market alongside well-known low cost carriers like easyJet and Ryanair. 

Short-haul flights in Europe are starting to pick up again towards pre-pandemic levels so the airline is keen to join and re-establish itself as a short-haul carrier.

A British Airways spokesperson told the Wall Street Journal that any progress on the new subsidiary plans will require them reaching an agreement with the group’s unions.

Coincidentally, Gatwick Airport earlier made an announcement that they will proceed with their plans on a dual-runway operation.

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London’s Gatwick Airport is proposing to shift the centerline of its Northern Runway so it can move to dual runway operations