Virgin Atlantic Tells Staff To Take Eight Weeks Off Unpaid Due To Coronavirus

Virgin Atlantic has told staff to take eight weeks' unpaid leave as coronavirus continues to affect demand for travel.

The company has today announced it will cut 80 per cent of flights by the 26th of March, and will increase this by a further 10 per cent by April.

It comes as global travel restrictions continue to be implemented around the world, and we're seeing a drastic rise in people reluctant to travel due to the risk of catching COVID-19.

Virgin's London Heathrow to Neward route is the first to be cut with immediate effect, and they have announced they will prioritise "core routes based on customer demand".

In a statement, the airline said: "This change amounts (to an) approximately 80% reduction in flights per day by 26 March. As a direct consequence we will be parking approximately 75% of our fleet by 26 March and at points in April will go up to 85%.

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"Owing to restrictions to international travel, the airline is reducing services to focus on core routes, depending on customer demand. This will be subject to constant review as the situation evolves.

"The World Health Organisation declared the outbreak a global pandemic on Wednesday 11 March, as cases continue to rise. An increasing number of countries are now closing their borders - most significantly, the US, where a travel embargo from the UK comes into force on Tuesday 17 March.

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"Though this was expected, it has accelerated the sharp and continual drop in demand for flights across Virgin Atlantic's network, meaning immediate and decisive action is needed.

"The safety and wellbeing of our people and our customers is always our number one priority. Today, Virgin Atlantic will put drastic measures in place to ensure cash is preserved, costs are controlled, and the future of the airline is safeguarded.

"The situation is deteriorating at pace and the airline has seen several days of negative bookings, driven by a huge volume of cancellations as customers choose to stay at home...

"As a direct result of this action the airline will need to further reduce its cost base. Staff will be asked to take eight weeks unpaid leave over the next three months, with the cost spread over six months' salary, to drastically reduce costs without job losses."

The airline added that, to reduce costs, it would "offering a one-time voluntary severance package to all employees," "offering a sabbatical of 6-12 months," "deferring annual pay increases until review in January 2021" and "reducing employer pension contribution for a period of one year".

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It will also be "continuing to offer an enhanced company sick pay policy, however, with terms reduced to 12 weeks full pay".

Plus, "CEO Shai Weiss has extended his 20% pay cut to the end of 2020, with the Executive Leadership Team agreeing a decrease of 15% for the same period."

Virgin isn't the only one to make such a bold move. Ryanair recently announced it expects most of its European flights to be grounded over the next 10 days, stating that growing restrictions could make flying "impractical if not impossible".

Meanwhile, easyJet has also warned that most of its flights could soon be cancelled, although it has promised to continue operating "rescue flight" where possible to bring passengers home.

easyJet chief executive Johan Lundgren said: "European aviation faces a precarious future and it is clear that coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over".

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British Airways' parent company IAG has also revealed that its capacity for April and May is set to be cut by "at least 75 per cent" in comparison to the same period last year.

Plus, as coronavirus continues to spread, Tui has also cancelled the "vast majority" of its holidays.

A statement from the travel company reads: "In this rapidly changing environment the safety and welfare of our guests and employees worldwide remains of paramount importance and thus Tui Group has decided, in line with government guidelines, to suspend the vast majority of all travel operations until further notice, including package travel, cruises and hotel operations".

Topics: News, Travel News, Coronavirus

Joanna Freedman

Joanna is a journalist at Tyla with a particular interest in highlighting women's issues and telling inspiring first person stories. She's also their resident foodie, and loves covering exciting new beauty launches, too. Contact her at [email protected].

@joannafreedman