Home >Companies >News >Covid-19 impact: British Airways temporarily lays off 28,000 staff
British Airways planes are seen parked at Bournemouth Airport, as the spread of the coronavirus disease (COVID-19) continues (Reuters)
British Airways planes are seen parked at Bournemouth Airport, as the spread of the coronavirus disease (COVID-19) continues (Reuters)

Covid-19 impact: British Airways temporarily lays off 28,000 staff

  • British Airways is falling into line with carriers around the world in furloughing workers as the virus effectively wipes out global travel demand
  • European carriers will be worst hit by the crisis, and have enough cash to survive only two months on average, according to IATA

British Airways will furlough about 28,000 employees to save cash after grounding most of its fleet in response to the coronavirus pandemic.

Following labor talks, all idled staff will receive 80% of their usual pay, the Unite union said in a statement Thursday. That will be funded by the U.K. government up to a value of 2,500 pounds ($3,095) a month under a national plan, with the airline picking up the tab for wages beyond that level.

British Airways is falling into line with carriers around the world in furloughing workers as the virus effectively wipes out global travel demand. Among U.K. rivals, EasyJet Plc laid off cabin crew for two months Monday after grounding its entire fleet, while staff at Virgin Atlantic Airways Ltd. have signed up for eight-week breaks, extended sabbaticals or voluntary severance.

IAG, as International Consolidated Airlines Group is known, said earlier it would cancel a planned 337 million-euro ($366 million) dividend payout and set aside all of last year’s profits to help ride out the travel slump.

As part of the lay-offs accord, permanent redundancies being sought by BA will be halted, Unite said. Employees will also be able to divert pension contributions into their pay for a short period of time to top up salaries. The airline said it’s preparing a statement on the measures.

European carriers will be worst hit by the crisis, and have enough cash to survive only two months on average, according to the International Air Transport Association. IAG is better placed, with more than 7 billion euros in cash, according to Chief Executive Officer Willie Walsh, who has said the group has no plans to seek state funding.

IAG has cut capacity 75% across carriers that include Madrid-based Iberia and Ireland’s Aer Lingus, as well as BA, though Walsh says that figure may climb.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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