One of Europe’s biggest airlines, British Airways, is deeply affected by the pandemic thus may be forcing in the cutdown of workforces.
The parent company IAG, who also owns Spanish airline Iberia and Ireland’s Aer Lingus, in a statement, said that a restructuring and redundancy programme is needed due to the low demand of airlines amidst the pandemic.
Further, it said that this proposal will surely affect most British airways and will result in the reduction of 12,000 workforces.
It also said that to re-reach the pre-pandemic stage, it will take several years.
Along with British airlines, several other airline groups like Lufthansa (DLAKY), which owns national carriers in Germany, Switzerland, Austria, and Belgium, also warned that the recovery of airlines will take several years. Moreover, in the earlier month, it had already announced that it was permanently reducing the size of its fleet and shuttering one of its low-cost carriers.
British Airways chief executive Alex Cruz wrote in a letter to staff: “In the last few weeks, the outlook for the aviation industry has worsened further and we must take action now. We are a strong, well-managed business that has faced and overcome, many crises in our hundred-year history.”
Virgin Australia has already collapsed into administration last week, while on Monday, airline Virgin Atlantic who is owned by Richard Branson, has said that they are seeking a commercial loan from the UK Government.
Due to this pandemic, airlines have been affected the most and they are in crisis. What IAG announced is fearing, not because it is saying that, the workforce would be reduced but, because the recovery of airlines will be a long way to go and that it will take several years.
Though financial reserves will make the airline run, but only for the moment. Taking advantage of the Government’s job retention scheme can save a lot of jobs, but it is when a quick recovery is there.
Since nobody knows when this lockdown will be uplifted and when travel restrictions will be removed and what would be the proposed conditions under which people can fly. So, it is unlikely that airlines can recover quickly.