British Airways' Birmingham operation has escaped a nationwide cull of nearly 600 management jobs over the next two years.
The UK's flagship airline yesterday confirmed that as part of a restructuring of its business the number of senior managers will be reduced by half - from 414 to 207.
And there will be a 30 per cent cut in the number of middle managers - from 1,301 to 911. Shares closed up 0.25p at 312p.
The losses - totalling 597 - will be made by March 2008, the month that BA is due to move into Heathrow's new Terminal 5.
Willie Walsh, who took over as BA chief executive from Sir Rod Eddington earlier this autumn, said the decision had not been taken lightly.
"I said when we reported our second quarter financial results last month that our costs were up in most areas and that, as a result, we need to re-energise our efforts to deliver a competitive cost base. We must lower our costs so that we can fund future investment in our business. This marks the start of a renewed effort to deliver our goal of a ten per cent operating margin."
Mr Walsh has been under pressure to further cut costs at the airline, which faces high fuel prices and tough competition. During his five-year tenure at BA Sir Rod cut some 14,000 jobs, while Mr Walsh axed one third of Irish carrier Aer Lingus's workforce where he was chief executive before his move to BA.
He added: "I am confident that these measures, however difficult, will help to build a robust British Airways and one that will benefit from sustained profitability.
"This action will enable us to carry out the investment we need to make in our business in the coming years in order to deliver a more competitive and efficient airline."
The job cuts are set to save the airline £50 million as part of its drive to achieve a £300 million cost reduction programme by March 2007 - a target announced in January last year.
BA said it planned to carry out the reduction in the number of senior managers in three phases. Phase one will see 94 of the top executives leave the business by March 31 next year.
Further reductions will continue during the next two years with the 50 per cent target achieved by March
2008. Full proposals and a timetable for achieving the planned 30 per cent reduction in middle managers will be developed and communicated by next March.
However, a BA spokeswoman confirmed there would be no impact on the carrier's Birmingham operation.
Mr Walsh added: "We are re-structuring the airline to remove duplication, simplify our core business and provide clearer accountability. Managers will have greater accountability for making decisions, delivering results and leading the business."