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Airlines in turmoil slash jobs, cancel orders, and a few are collapsing

Business

Airlines in turmoil slash jobs, cancel orders, and a few are collapsing

Virgin Airlines, one of the world’s biggest carrier is trying to get new shareholders to inject new money in the company to enable it stay afloat.

A number of airlines across the world have intensified cost-cutting measures as part of efforts to reduce the bleeding effect of the lock-down restrictions that were imposed by countries worldwide.

Reliable sources indicate that a number of airlines have taken dramatic steps including suspending orders of new aircraft, slashing jobs, or entered into liquidation as they cannot afford to incur the costs of maintaining the ‘birds’ in the parking lots on top of paying huge salaries for staff.

The radical cutbacks no only mean that the industry is one of the worst hit in the world, but also offer a peak into the wider economic turmoil that will befall countries and individuals when the COVID crisis is finally over.

The International Air Transport Association (IATA) estimated that the industry could lose upwards of 113 billion dollars (in a scenario with a broader spreading of COVID-19).

The following is the list of companies that are slashing jobs and orders

Virgin Airlines, the UK based carrier has fired more than 3000 people including 600 pilots. The company is also reported to be in talks with the UK government to pave way for injection of new cash to ease its cashflow problems.

Finnair has returned 12 planes and laid off 2,400 workers.

You Airlines, the Thai carrier has grounded 22 planes and fired 4,100 workers.

Ryanair, the Irish budget airline, has grounded 113 planes and got rid of 900 pilots for the moment, 450 more in the coming months.

Norwegian has completely stopped all its long-haul flights!

SAS has returned 14 787 boeings to lessors and fired 520 pilots.

The Scandinavian states are studying a plan to liquidate Norwegian and SAS to rebuild a new company from their ashes –

Ethihad has canceled 18 orders for A350, grounded 10 A380 and 10 Boeing 787.

With lays off 720 staff – Emirate has grounded 38 A380s and canceled all orders for the Boeing 777x (150 aircraft, the largest order for this type). They have “invited” all employees over 56 to retire.

Wizzair has returned 32 A320s and laid off 1,200 people, including 200 pilots, another wave of 430 layoffs planned in the coming months.

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