British Airways to layoff 12,000 workers for restructuring - Aviation Updates Philippines | Latest Philippine aviation news

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British Airways to layoff 12,000 workers for restructuring

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Aviation Updates Philippines – A report from CNN Business revealed British Airways' plans to retrench as much as a quarter of its 42,000-strong workforce while the COVID-19 pandemic halts airline operations worldwide given extensive travel restrictions and slumping passenger demand.
SIGNIFICANT LOSSES. British Airways narrowbody fleet are seen parked at an airport in Europe due to the suspension of flights worldwide. Photo from The Sun UK.
International Airlines Group (IAG), the parent company of British Airways, Iberia, Vueling, among other European carriers, has already notified its labor unions about the proposed retrenchment as the group undergoes a restructuring program.

"Devastated" over the news, pilots union British Airline Pilots Association (BALPA) said they will fight for every single lay-off, according to a BBC News article. The IAG, however, says the move is still up for consultation but warns most job cuts will come from British Airways due to redundancy.

For the first quarter of 2020, the IAG reported a 13-percent decline in total revenue to €4.6 billion compared to €5.3 billion in the prior-year period. Most of the losses incurred were generated by British Airways while Spanish low-cost carrier Vueling reported the least.

"In the last few weeks, the outlook for the aviation industry has worsened further and we must take action now. We are a strong, well-managed business that has faced into, and overcome, many crises in our hundred-year history," British Airways Chairman and Chief Executive Officer Alex Cruz said.

He added: "We must overcome this crisis ourselves, too. There is no government bailout standing by for BA and we cannot expect the taxpayer to offset salaries indefinitely. We will see some airlines go out of business."

A 2020 outlook released by the IAG reported that it expects financial figures to be "significantly worse" because of the significant decline in passenger traffic and capacity over the last few months. The restoration of the 2019 air travel demand will take years which prompted the group to take necessary restructuring measures.

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