Virgin Atlantic plans to cut jobs

Virgin Atlantic announced plans for 1,150 more job cuts due to the coronavirus crisis, saying its 1.2 billion pound ($1.6 billion) rescue deal alone was not enough to secure its future.

The airline, which had already announced around 3,500 job losses, completed the rescue deal with major shareholders and creditors on Friday after various court approvals.

Chief Executive Shai Weiss said that while the deal was a major step forward towards survival, more action was needed. “After the sacrifices so many of our people have made, further reducing the number of people we employ is heart-breaking but essential for survival,” he said.

Airlines across the world have been slashing jobs and seeking funds after the COVID-19 pandemic grounded most flights earlier this year and demand has been slow to recover amid continue restrictions in many countries.

With the latest cuts, Virgin Atlantic, which is 51% owned by Richard Branson’s Virgin Group and 49% by the US-based Delta Air Lines, will have shed almost 50% of its pre-pandemic workforce of around 10,000.

The airline said it was entering a company-wide consultation on the latest reductions, which fall across all functions, and would discuss the cuts with trade unions Unite and the British Airline Pilots Association.

Unite called on the British government to support the aviation sector. Virgin Atlantic reached a private-only recapitalisation deal after the government said it had to exhaust such avenues before state backing was considered.

The likes of the United States and Germany have given bailouts to major airlines. British Prime Minister Boris Johnson said on Friday he knew it was tough for aviation workers and cited broader support the government has given.

Reuters