Virgin Atlantic sacks 3, 150 workers, retires B747 for two engine planes
- Leaves Gatwick for Heathrow airport, reduces costs
In response to the ravaging COVID-19 pandemic that has put global airlines in serious financial dire straits, Virgin Atlantic has announced strategies to reshape its business and come out of the problem stronger.
Consequently, the airline announced the planned reduction of 3,150 jobs across all functions, just as it also disclosed that from today, it would will no longer use all of its seven 747-400s, with four A330-200 aircraft retiring in early 2022 as planned.
By 2022, the airline said the simplified, greener fleet will comprise of 36 twin engine aircraft reducing
As measures to keep it afloat, Virgin Atlantic has concluded plans to fly only wide-body, twin-engine aircraft from London Heathrow and Manchester to the most popular destinations.
The mega carrier will also be moving its flying programme from London Gatwick to London Heathrow, with the intention of retaining its slot portfolio at London Gatwick, so it can return in line with customer demand.
According to the carrier, “Virgin Atlantic’s vision remains to become the most loved travel company and the sustainability leader in our industry. To emerge from this crisis, against an uncertain backdrop, the airline must radically adapt, so that it can continue to thrive, while always keeping its people and customers at the heart of everything it does. Once the crisis subsides, Virgin Atlantic will make a significant contribution to the UK’s economic recovery by providing essential connectivity and competition”.
It stated that uncertainty around when flying would resume, coupled with unprecedented market conditions brought on by the pandemic, have severely reduced revenues for the global aviation industry and Virgin Atlantic.
Accordingly, the airline has taken decisive action to reduce costs, preserve cash and to protect as many jobs as possible.
It explained that Virgin Atlantic would continue to explore all available options to obtain additional external funding.
Constructive discussions with several stakeholders, including HM Government it said, are ongoing, while the company continues to benefit from shareholder support.
However, to safeguard the future of the airline so it can emerge from this crisis, the airline chief said a sustainably profitable business, further action was required.
According to Weiss, “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. The commitment of our people throughout this crisis has been nothing but amazing, and the embodiment of true Virgin spirit. As we have navigated the Covid-19 crisis, I have been humbled at every step by their solidarity. In times of adversity we must support each other so that ultimately, we can emerge a stronger and better Virgin Atlantic”.
“After 9/11 and the Global Financial Crisis, we took similar painful measures but fortunately many members of our team were back flying with us within a couple of years. Depending on how long the pandemic lasts and the period of time our planes are grounded for, hopefully the same will happen this time.
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