International Airlines Share News (IAG)

(Sharecast News) - Virgin Atlantic will cut more than 3,000 jobs across the business, the airline said on Tuesday, and end its Gatwick operations as the coronavirus dents air travel.
The company, which cautioned that it could take up to three years for the aviation industry to recover to pre-crisis levels, announced a planned reduction of 3,150 jobs across all functions. It currently has a 10,000-strong workforce.

Chief executive officer Shai Weiss said: "We have weathered many storms since our first flight 36 years ago, but none has been as devastating as Covid-19 and the associated loss of life and livelihood for so many.

"However, to safeguard our future and emerge a sustainably profitable business, now is the time for further action to reduce our costs, preserve cash and to protect as many jobs as possible. It is crucial that we return to profitability in 2021. This will mean taking steps to reshape and resize Virgin Atlantic in line with demand, while always keeping our people and customers at the heart of all we do.

"I wish it was not the case, but we will have to reduce the number of people we employ."

Virgin, founded by entrepreneur Richard Branson, also said it will be simplifying its fleet and end its Gatwick operations. From this point on, the airline will fly only wide-body, twin-engine aircraft from London Heathrow and Manchester to the most popular destinations. It will move its flying programme from Gatwick to Heathrow, but plans to retain its slot portfolio at Gatwick so it can return in line with customer demand.

"Uncertainty around when flying will resume, coupled with unprecedented market conditions brought on by the pandemic, has severely reduced revenues for the global aviation industry and Virgin Atlantic," it said.

Virgin said it continues to explore all available options to obtain additional external funding. Constructive discussions with several stakeholders, including HM Government, are ongoing, it added.

Brian Strutton, General Secretary of the British Airline Pilots Association (BALPA), said: "Our members and all staff in Virgin Atlantic will be shocked by the scale of this bombshell. We will be challenging Virgin very hard to justify this.

"My letter to the Chancellor yesterday is all the more significant - why is the Government sitting on its hands while aviation plunges further towards a death spiral? Government should call a moratorium on job losses in aviation and lead a planned recovery."

BALPA pointed out there are 426 pilots at risk at Virgin.

Last week, budget airline Ryanair said it was planning up to 3,000 job cuts as it forecast the airline business would take at least two years to return to pre Covid-19 conditions. British Airways, meanwhile, announced the loss of 12,000 jobs, including a quarter of its pilots.

BA is owned by International Consolidated Airlines Group, which also owns Iberia, Vueling and Aer Lingus.

Diana Holland, assistant general secretary at union Unite, said: "We have grave concerns about the impact on Gatwick airport and the local economy following this latest blow.

"The Virgin announcement that it is pulling out of Gatwick follows that of Norwegian and BA indicating that they are reducing operations and pulling out of Gatwick.

"There have been 18,000 job losses announced in the UK aviation sector in the last week alone and this makes the case even more strongly that the aviation industry-specific package Unite has consistently called for, and the government has promised, must now be delivered."