Virgin Atlantic Airways has asked the staff to take eights weeks unpaid leave as it plans to ground 75% of its fleet by 26 March and a further 10% by April as the demand for travel plummets due to the coronavirus pandemic. It has permanently axed the London Heathrow-Newark route with immediate effect and will prioritise ‘core routes based on customer demand’.
The airline said in a statement: ‘This change amounts (to an) approximately 80% reduction in flights per day by 26 March. As a direct consequence we will be parking approximately 75% of our fleet by 26 March and by April it will go up to 85%. ‘Owing to restrictions to international travel, the airline is reducing services to focus on core routes, depending on customer demand. This will be subject to constant review as the situation evolves.’
The company said they were taking the drastic measures to ‘ensure cash is preserved, costs are controlled and the future of the airline is safeguarded’. The airline is one of many that has been forced to drastically cut down their operation to cope with a fall in passenger demand. They asked the staff to take two months unpaid leave, the cost of which will be spread over six months salary, is the only way they can reduce outgoings without making job losses. The move has the support of unions BALPA and UNITE, according to the statement.
Virgin has already asked for state aid in an effort to keep the business alive. Peter Norris, the majority shareholder of the airlines, has written to Boris Johnson asking for a £7.5 billion package to help the airline industry cope with the fallout of the coronavirus crisis. Meanwhile, British Airways has said it is ‘fighting for survival’ with plans to cut capacity by 75% in April and May. Virgin’s announcement comes as several major airlines warned they would also be taking emergency measures to keep themselves afloat. Norwegian Air has said it will cancel 85% of its flights and temporarily lay off 7,300 employees. The carrier said the virus has halted demand for air travel, particularly after a travel ban to the US from Europe was implemented. Norwegian Air has also announced plans to lay off 7,300 staff.
Other nations have also severely limited air traffic. EasyJet said that the knock-on effect of Covid-19 ‘could result in the grounding of the majority of the easyJet fleet’. The company said that it would continue to operate rescue flights for short periods ‘where we can’ repatriate passengers; however, it would also be cutting operations further. Chief executive Johan Lundgren said: ‘European aviation faces a precarious future and it is clear that coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over’. Ryanair says it expects to reduce its capacity by up to 80% in the next seven to 10 days, and ‘a full grounding of the fleet cannot be ruled out.’
