Virgin Atlantic Airways is likely to cut down another 1,000 jobs due to the slower-than-expected recovery in international air travel demand. The decision comes after the airline previously furloughed more than 3000 employees due the COVID-19 crisis and closed down its base at London’s Gatwick Airport.
The airline also recently secured a 1.2 billion pound rescue package approved by U.K. court to keep the carrier afloat amid the critical situation. If the decided round of cuts is officially implemented, the carrier’s workforce will almost be halved as compared to its pre-pandemic level of about 10,000 people.
However, the airline can also opt to retain some employees being made redundant in a ‘holding pool’ if passenger demand recovers swiftly, in line with those affected by May’s workforce restructuring. The coronavirus pandemic has disrupted the entire airline industry across the globe. Virgin Atlantic has also been largely disrupted by the COVID-19 outbreak.
The airline has desperately requested ministers to introduce a comprehensive coronavirus testing regime inside U.K. airports time and again. The completion of its rescue deal, which includes a £170m loan from the hedge fund Davidson Kempner Capital Management, will finally provide Virgin Atlantic the sufficient financial breathing space to survive one of the biggest crises it faced in history.
Tags: Coronavirus, Covid-19, U.K., Virgin Atlantic Airways
