British Airways expected to stand down 36,000 staff amid coronavirus crisis
About 80 per cent of British Airways’ workers are expected to be stood down as the coronavirus pandemic continues to ravage the airline industry.
British Airways is expected to suspend 36,000 staff as deals with the fallout of the coronavirus crisis.
The airline, which has grounded almost its entire fleet due to the pandemic, has reached an agreement with unions after a week of negotiations, the BBC reported.
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The 36,000 workers to be stood down represent about 80 per cent of British Airways’ flight attendants, ground staff, engineers and head office workers.
The decision will affect all staff at Gatwick and London City airports, where British Airways has suspended operations during the pandemic.
But there are no plans to make workers redundant, according to the BBC.
The staffers are set to benefit from the UK Government’s COVID-19 job retention scheme, which covers 80 per cent of a worker’s salary capped at £2500 ($5100) a month.
In a separate deal reached with unions, British Airways pilots will take a 50 per cent pay cut over the next two months.
The airline’s parent company International Airlines Group, which also owns Ireland’s Aer Lingus and Spanish carriers Iberia and Vueling, has turned over a healthy profit in recent years and is considered to be in a better financial position than many of its competitors.
Commercial aviation has been one of the most hard-hit industries through the coronavirus crisis, as airlines around the world grounded aircraft due to a rapid decline in travel demand caused by lockdowns and travel bans.
The International Air Transport Association predicts airlines globally will take a $66 billion hit due to the unprecedented downturn in travel.
In Australia, Qantas and Virgin Australia have suspended their international operations and almost all their domestic services. Tigerair Australia has been grounded during the pandemic.
Both airlines are seeking federal government bailouts worth billions to stay afloat.