British Airways has begun talks with unions about the airline's proposed £300 million reduction in staff costs.

The airline has given itself until March 2006 to make the savings which some unions have claimed could lead to 3,000 job losses.

Chief Executive Rod Eddington has refused to say how many jobs might go.

He said the company was looking at absenteeism and work practices.

BA said it also faced other issues, which could cost it up to £400 million over the next few months.

These include pensions, increased pay, fuel rises and increased landing charges.

Monday March 15, 2004