Because of the interruption of the coronavirus pandemic, British Airways plans to cut as many as 12000 jobs from its 42000 employees. BA has about 4,500 pilots and 16000 groups working and just took nearly 23000 employees vacation. BALPA Secretary-General Brian Strutton said: “This has come as a bolt out of the blue from an airline that said it was wealthy enough to weather the COVID storm and declined any government support”.
BALPA does not admit to misfortune and tried best to save everyone. We know that the aviation industry is in a very difficult situation. The rivals, IAG’s statement is chilling in any case-not only because of the number of the stakeholders involved. This is based on the organization’s clear statement that it expects the business recovery to be very mild, and the traveler’s request will not reach the 2019 level in a long time.
Carriers can borrow retention rights related to money and use the government’s plan. This kind of government support is at the moment is not enough? With rapid recovery, it may be enough to cope with countless factors. However, the possibility of the post-pandemic situation is very uncertain. When the countries/states remove travel restrictions, under what conditions persons can choose to fly-or whether they need to fly or not, this is uncertain.
IAG has now learned that it expects that until half a month later, the business seems to reach the standard operations, and management can take actions as needed. Even so, associations may deviate, and organizations may end up being blamed for over-responsiveness—even using emergencies to reduce their cost basis. Besides, on Tuesday, IAG also discovered the impact of the outbreak of pandemic on a bunch of revenue. In the first three months of 2020, revenue fell by 13% to 4.6 billion euros (£ 4 billion). Stephen Gunning, the chief financial officer of IAG, warned that it is even more devastating. Operators all over the world warn that they will face a long challenge to cope with the current losses.
EasyJet has fired 4000 from its team based in the UK for two months. More importantly, Sir Richard Branson addressed the government to help him save his Virgin Atlantic carrier with a credit line of up to 500 million pounds. Elsewhere, Qantas has already taken down 20000 employees, and Air Canada has provided leave for approximately 15200 workers. Norwegian Airlines has said that there may be a shortage of funds by mid-May. American Airlines, about 4,800 pilots have agreed to take temporary leave due to reduced pay, and more than 700 pilots are retiring early.