British Airways has revealed plans to cut one-third of its 1,715 senior and middle managers by 2008 as part of a wider plan to reduce labour costs. Half the airline's senior managers will be culled.

Times Online reported last week how the flag carrier is also planning to use automatic check-in procedures to cut front-line staff in preparation for its move to Heathrow’s Terminal 5.

"The decision to embark on a major reduction in management numbers is not one I have taken lightly," Willie Walsh, BA’s recently appointed chief executive, said today.

"I said when we reported our second-quarter financial results last month that our costs were up in most areas and that, as a result, we need to re-energise our efforts to deliver a competitive cost base.

"We must lower our costs so that we can fund future investment in our business. Today marks the start of a renewed effort to deliver our goal of a 10 per cent operating margin."

The plans include a 50 per cent reduction in senior managers, from 414 jobs to 207, and a proposed 30 per cent reduction in middle managers from 1,301 jobs to 911 jobs.

The proposed management job cuts are set to save BA 50 mln stg as part of its drive to achieve a £300 million cost-reduction programme by March 2007, announced in January 2004.

In morning trade, shares in BA were up 3.5p at 315.25p. To track the stock click

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