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BA no-frills move cuts business seats

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BA Connect will begin flights from the end of March.

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(CNN) -- In a shake-up likely to have a major impact on business travelers, British Airways is to restructure its European operations to launch a direct challenge to low-cost carriers.

The airline said it intended to overhaul its loss-making regional CitiExpress operation, slashing prices on flights by up to 40 percent, but scrapping business class seats and free in-flight catering on some services.

Rebranded BA Connect and due to begin operations on March 26, the service will position the airline in competition with successful European no-frills fliers easyJet and Ryanair.

BA's move will significantly cut the number of executive class seats available on short haul flights between European cities.

But the airline says its operation reflects changing demands and will be a hit with business travelers keen to cut costs while sticking to a trusted name in aviation.

"The move is a direct response to changing customer needs and the challenges that have emerged in the marketplace since the creation of CitiExpress," said David Evans, managing director of CitiExpress.

"We know air travelers value our distinctive brand and the wide range of benefits associated with a full service airline at competitive prices."

In contrast to other low-cost carriers, BA said the new service would offer more flexibility.

Restricted and non-changeable tickets would disappear, with all tickets, regardless of cost, being changeable.

Business passengers and frequent flyers would also be able to book "BA Connect Plus" tickets, which would include airport lounge access.

"We have an innovative service promise for business and short-break leisure air travelers, offering year-round, one-way prices that match the no-frills airlines and the added service promise and resources of an airline of British Airways' size and stature," said Evans.

BA CitiExpress currently operates from more than a dozen UK airports, including Glasgow, Edinburgh, Manchester and Birmingham, serving countries such as France, Germany, Italy, Spain and Switzerland.

Under the restructuring, free food and business class would remain on some short-haul flights operated by BA, primarily from Heathrow, Gatwick and London City airports.

BA's regional services have been losing an estimated $53 million a year, according to the UK's Press Association.

The reshuffle will mark the airline's first foray into budget airlines since it sold off its no-frills subsidiary, GO, to easyJet in May 2002.

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