British Airways is planning the launch of a subsidiary to run short-haul routes out of Gatwick from next summer.

The airline, which has not been given a name, would run alongside BA’s long-haul operations from the hub, which is Britain’s second biggest airport.

Domestic and European routes operated by BA from Gatwick have been suspended during the pandemic.

Details of the plans were revealed in an internal letter to staff reported by the PA news agency.

It said: “This was previously a highly competitive market, but for us to run a sustainable airline in the current environment, we need a competitive operating model.

“Because of that, we are proposing a new operating subsidiary to run alongside our existing long-haul Gatwick operation, to serve short-haul routes to/from Gatwick from summer 2022.

“This will help us to be both agile and competitive, allowing us to build a sustainable short-haul presence at Gatwick over time.”

The letter said that the “cautious approach of governments” to reopening travel had undermined customer confidence and meant the recovery of air travel was “far behind where we need it to be”.

It also highlighted the end of the furlough scheme, which has been subsidising the wages of temporarily laid-off workers since last year, on 30 September.

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That will mean its payroll costs “steeply increase”.

The airline’s costs meant that it would “have to be as flexible as possible when it comes to the way we work, to help mitigate the situation over the coming months” the letter said.

BA said in a statement that it was “working with our unions on proposals for a short-haul operation at Gatwick”.

Martin Chalk, acting general secretary of pilots’ union Balpa, said: “Balpa cautiously welcomes this decision to restart BA short-haul operations at London Gatwick and create a number of much-needed new pilot jobs.

“Balpa and BA are in the final stages of negotiations over the revised pay and conditions for Gatwick-based BA pilots and we hope to bring these talks to a conclusion shortly.”

The plans come after speculation that BA might abandon its Gatwick routes.

The airline is owned by International Airlines Group, which also operates Iberia and Aer Lingus as well as low-cost brands Vueling and Level.

Details of the Gatwick proposals were revealed on the same day that latest changes to the government’s “traffic light” travel restrictions prompted BA chief executive Sean Doyle to call for the UK to “urgently end the uncertainty caused by the constant threat of changes to countries’ traffic light status”.

It comes a day after Gatwick said it was pressing ahead with a consultation on plans to bring its standby runway into use for routine flights despite the pandemic-driven slump in demand – predicting a recovery and further growth.

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