Airline to re-examine the next stage
The list of bidders for the coveted British Airways Workplace 2002 facilities management contract has been slashed to just four.

Amec, Halcyon (Emcor/Chesterton) Citex and Mowlem are leading contenders for the deal, which could be worth up to £450m a year.

Initially, 29 companies responded to BA's request for information. Two months ago, 12 bidders were said to be in the running. And last month the field narrowed further when Interserve pulled out because it felt it wasn't going to win, and Emcor and Chesterton joined forces.

The Workplace 2002 scheme plans to change the way workplace services at the airline's 1m sq m property portfolio are run and procured.

Initially the contract will be worth £50m a year, but this could rise to £450m a year as other services are added to the contract.

Other companies that were chasing the deal included Johnson Controls, Taylor Woodrow, Carillion, Amey, OCS, Aqumen and Planned Maintenance Engineering.

The winner of the contract will start in April 2002 and the programme, due to run for three years, aims to cut costs by 15 per cent in the first year.

It has also been reported that BA's cost-cutting attempts may be hastened in the wake of the terrorist attacks in the US. Following these events, senior property manager Alison Hartigan said that BA would now be re-examining the next steps in the Workplace 2002 project. Shares in BA plummeted to 10-year lows as the airline cancelled flights and it is reported that BA stands to lose £7m per day because of cancelled transatlantic flights.

Analysts predict the company will also speed up job cuts.