(Alliance News) - International Consolidated Airlines Group SA on Thursday said it has reached agreement with trade unions, GMB and Unite, to place over 30,000 cabin crew and ground-based employees of unit British Airways on UK government's Covid-19 Job Retention Scheme in April and May.
British Airways has also reached agreement with its 4,000 pilots to take four weeks of unpaid leave in April and May.
IAG has also decided to reduce its capacity further to around 90% in April and May compared to last year following a review to reduce operating expenses and improve cash flow.
In March, IAG announced that it would reduce capacity, expressed in terms of available seat kilometres, by at least 75% in April and May compared to the same period in 2019.
IAG's other airlines have received support from similar job retention and wage support schemes for more than 17,000 employees in Spain and are seeking similar support in Ireland.
Apart from BA, IAG owns Iberia, Vueling, Aer Lingus.
Separately, smaller peer easyJet PLC said that it has received confirmation that it is eligible to access funding under the UK government's Covid Corporate Financing Facility.
IAG shares in London closed 1.2% lower at 200.00 pence each on Thursday. easyJet shares closed 0.5% lower at 523.00p each.
By Tapan Panchal; tapanpanchal@alliancenews.com
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