British Airways chief executive Rod Eddington said: "We started this review with one clear objective in mind - to turn this company around. We will remain true to our heritage of being a full service network carrier committed to customer service excellence and world class products. But we must transform British Airways into a simpler, leaner, more focused airline so we can thrive and prosper in an increasingly competitive market."

The conclusions of the review signal a significant change to the size of British Airways as it takes further steps to address its cost base and sets the company on course to achieve a 10 per cent operating margin. This will be supported by an annualised cost saving of £650 million achieved by March 2004, with £450 million of this secured by the end of the first year (2002 - 2003).

There will be a further 5,800 job losses over the next two years, in addition to 7,200 announced in September 2001. In total, this amounts to a manpower reduction of 13,000 or 23 per cent of the airline's workforce of 56,700 in August 2001. Head office and support staff will reduce by more than a third (36 per cent). The company wants to achieve the manpower reduction by voluntary means and will work with the trade unions to achieve the target.

The airline will cut its global distribution costs to generate £100 million of savings, including reducing payments to travel agents in the UK for short haul bookings. This is also being introduced in June 2002 and will result in British Airways' lowest fares being available on the internet.

From summer 1999 to summer 2003, the airline's overall capacity reduction will total 21 per cent.

The airline also plans to cut a further 10 routes - five long haul and five short haul - as part of the overall reduction in capacity and will announce the details of the route cuts once consultations have been completed.

Mr Eddington said: "Simplification is key to removing cost from the business. These fleet moves mean our operations at Gatwick will be flown by just two aircraft types - Boeing 737s for short haul and Boeing 777s for long haul.

Two Boeing 777 aircraft are being sold and will exit the British Airways fleet in Spring 2002. The company will seek to sell a further five aircraft from its long haul Boeing fleet.

The airline announced that - as part of the strategy - further routes will transfer from Gatwick to Heathrow by summer 2002 - INCLUDING Buenos Aires. By summer 2003, Gatwick capacity will have reduced by a total of 60 per cent, since summer 1999.

According Company local info, British Airways will continuous with three weekly direct flights (Tuesday-Friday and Sunday) in the route between Buenos Aires and London where airport to be used will be Heathrow.