British Airways: Extending arms of coronavirus are eating the economy of the entire world. Stringent lockdowns have hampered the sources of income for all the sectors of the economy and among them, sectors like aviation and hospitality are in severe pain. Given this situation, British Airways is planning to cut as many as 12,000 jobs.
In a statement, International Consolidated Airlines Group SA (IAG) said the sweeping restructuring at British Airways will probably “affect most of British Airways’ employees and may result in the redundancy of up to 12,000 of them.” Union leaders criticized the plans and said the airline should have worked beforehand to secure more government aid to avoid cutting jobs.
Currently, British Airways has 45,000 employees, including 16,500 cabin crew and 3,900 pilots and all of them are uncertain about their future.
Chief Executive Officer Alex Cruz explained, “There is no government bailout standing by for British Airways and we cannot expect the taxpayer to offset salaries indefinitely. Any money we borrow now will only be short-term and can not address the longer-term challenges we’ll face.”
Earlier this month, British Airways used Britain’s COVID-19 jobs retention scheme to furlough 22,626 employees. Under the scheme, the govt takes on a part of the value of retaining staff who remain on the payroll while being sent home during the crisis.
Answering its rivals the airline said it will take several years for passenger demand to return to 2019 levels and between these, it will be almost impossible to survive in the industry.