Talks between British Airways and its in-flight meals supplier Gate Gourmet are reportedly close to agreement. The caterer has said unless it gets more money from BA it will have to go into administration, the first step towards bankruptcy. Gate normally supplies 80,000 meals a day for BA at Heathrow Airport.
The situation was made more complicated by the fact that the catering company is involved in an industrial dispute after it sacked 670 of its workers earlier this month. Many British Airways ground staff then walked out in support of the dismissed Gate Gourment employees. The wildcat strike stranded 100,000 passengers at the height of the summer holiday season and cost BA at least 45 million euros. BA says any deal is contingent on Gate Gourmet solving its staffing dispute with its workers. The caterer, which is owned by a US private equity group, is also holding separate talks with the union.