WILLIE Walsh, chief executive of British Airways, said he had no idea how long the economic slowdown that is hammering the industry would last and reiterated predictions that more airlines would go out of business.

WILLIE Walsh, chief executive of British Airways, said he had no idea how long the economic slowdown that is hammering the industry would last and reiterated predictions that more airlines would go out of business.

However, Walsh insisted the national flag carrier would emerge as one if the winners from a period of consolidation he expects will affect airlines.

Speaking to journalists in Edinburgh, Walsh gave a bleak assessment of the outlook for airlines as they face up to mayhem in the financial services industry, which is a key market, and a downturn in consumer confidence.

"It's clear that the fall-out from the financial services industry is seen as having an impact on our business because 30% of the people who travel in premium cabins are employed in financial services. The impact of high oil prices and the credit crunch and the general doom-and-gloom about the economic situation and consumer confidence is impacting on our business."

Asked by The Herald when things might he improve, he said: "Your guess is good as mine.

"I don't think I have ever seen a time when so many external factors were impacting so negatively and I don't think its going to get better any time soon."

Walsh added: "It's a tough environment, but I think we are well positioned. We have a very strong balance sheet, we have a very strong cash position and are well positioned to take advantage of opportunities that come along.

"There are a lot of airlines out there that will not have the cash or the balance sheet position that will enable them to survive."

The company is closing a cabin crew base in Glasgow, where 138 people work, to save money.

However, Walsh said the company would continue to provide more flights between Scotland and London hub airports than any rival.

BA is targeting breakeven at the operating level after making record profits last year.