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If you were in any doubt about the dire situation of the UK’s airline industry, you only have to look to British Airways for proof. The flagship airline of the country has just asked its employees to work for free to help keep the company afloat.

The airline lost a staggering £400 million last year. To try to keep itself going, it has now asked 400,000 staff to work for free for up to a month.

The boss of the company, Willie Walsh, has indicated that he will practice what he preaches by sacrificing his pay for a month. This will set him back £61,000 and he will therefore be giving up the most in actual value. However, his £740,000 salary means that he can probably afford to go a month without pay and not feel the pinch, whereas asking the luggage handlers and cabin crew to take a one-month cut is a different matter.

The reason it is doing so badly is due to two main reasons, which are the same reasons that other airlines are having such a tough time: the huge drop in passengers due to the recession, and the rise in oil prices witnessed last year.

In the BA newsletter, Mr Walsh said that they “face a fight for survival” and that how they fare will rely on “everyone contributing to changes”.

Opinion is divided over whether it is a good thing or not. It would save people from becoming redundant in such difficult times, but at the same time, any pay cut these days is going to hit many workers hard.