BRITISH Airways’ plans to launch a short-haul subsidiary at Gatwick Airport have been scrapped after it failed to reach an agreement on pilots’ contracts.

A spokeswoman for the airline told the PA news agency that it was “disappointed” it could not secure a deal with trade union Balpa.

She said: “After many years of losing money on European flights from the airport, we were clear that coming out of the pandemic, we needed a plan to make Gatwick profitable and competitive.

“With regret, we will now suspend our short-haul operations at Gatwick, with the exception of a small number of domestic services connecting to our long-haul operation, and will pursue alternative uses for the London Gatwick short-haul slots.”

The vast majority of British Airways’ short-haul flights from the West Sussex airport have been suspended since March 2020 due to the pandemic.