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(Alliance News) - easyJet PLC on Tuesday confirmed plans to shed staff and potentially close three of its UK bases.
The budget carrier said it informed UK trade unions BALPA and UNITE of its plans. BALPA earlier on Tuesday said easyJet informed it that 727 UK-based pilots are at risk of redundancy.
"BALPA is shocked at the size of potential job losses which equates to nearly 1-in-3 of easyJet pilots in the UK, which it says doesn't add up," the union said.
The FTSE 250-listed airline said its proposals also include the closure of its London Stansted, London Southend and Newcastle airport bases, though noted these would remain "part of easyJet’s route network"
"We have also informed all employees who may be directly affected by these proposals and will be providing full support to our people during this difficult time. We are fully committed to work closely with our employee representatives during these consultations with the aim of minimising job losses as far as possible," easyJet said.
The travel sector has been battered by the Covid-19 pandemic, with government forced lockdown measures emptying skies and depleting demand. easyJet back in May predicted that market demand won't return to pre-virus levels until 2023.
It also in May warned it would cut staff numbers by 30%.
"These are very difficult proposals to put forward in what is an unprecedented and difficult time for the airline and the industry as a whole. We are focused on doing what is right for the company and its long term health and success so we can protect jobs going forward," it said.
Chief Executive Officer Johan Lundgren said on Tuesday: "Unfortunately the lower demand environment means we need fewer aircraft and have less opportunity for work for our people - we are committed to working constructively with our employee representatives across the network with the aim of minimising job losses as far as possible. These proposals are no reflection on our people at Stansted, Southend and Newcastle, who have all worked tirelessly and have been fully committed to providing great service for our customers."
Earlier on Tuesday, easyjet said its founder Stelios Haji-Ioannou's stake in the firm was diluted to below 30% following a fundraise.
"As a result of the non-pre-emptive placing announced on June 24, 2020, the Haji-Ioannou concert party no longer holds 30% or more of the issued share capital of the company," easyJet said.
The company said an agreement between it and Haji-Ioannou's vehicle easyGroup under controlling shareholder rules now has been terminated.
easyJet shares were 0.8% lower at 681.10 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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