British Airways To Cut 12,000 Jobs Over COVID-19

British Airways (BA) today launched a consultation process likely to result in 12,000 layoffs among its 42,000 staff. The move was confirmed in a statement issued by the UK carrier’s parent group, IAG, which also owns Spain’s Iberia and Ireland’s Aer Lingus.

IAG, said in a statement it was taking the decision on the basis that it believed it would be some years before air traffic volumes would return to normal. Also said it expects the situation to deteriorate in the current second quarter.

BBC reports that International Airlines Group (IAG), British Airways parent company, has presented a restructuring and redundancy programme to trade unions

“In light of the impact of COVID-19 on current operations and the expectation that the recovery of passenger demand to 2019 levels will take several years, British Airways is formally notifying its trade unions about a proposed restructuring and redundancy programme,” IAG said in a statement.

“The proposals remain subject to consultation but it is likely that they will affect most of British Airways’ employees and may result in the redundancy of up to 12,000 of them.

“As previously announced, British Airways has availed itself of the UK’s COVID-19 job retention scheme and furloughed 22,626 employees in April.”

IAG disclosed that it will take several years for the air travel industry to return to its level before the coronavirus outbreak.

In a letter to staff, Alex Cruz, British Airways chief executive officer, said the airline had to take action because there is no government bailout.

“We must overcome this crisis ourselves, too. There is no government bailout standing by for BA and we cannot expect the taxpayer to offset salaries indefinitely. We will see some airlines go out of business,” he wrote.

In Nigeria, Max Air and Arik Air have suspended staff salaries with Arik Air staff sending staff on unpaid leave.

This is in addition to an 80% salary cut for the month of April for Arik Air staff.

April 28, 2020