LONDON— British Airways abandoned a plan to create a new short-haul subsidiary after failing to win support from its pilots for the venture, which the airline had hoped would offer a way to offset pandemic-induced declines in long-haul traffic.
The defeat is a blow for the airline, which wanted to create a new, cash-generative operation based at London Gatwick Airport in time for next summer. British Airways has for years battled to make its operations at the airport profitable and the new subsidiary would have allowed the company to renegotiate pilot and operating costs.
