International Cons Airlines Group IAG further reduces capacity and access job scheme
RNS Number : 6542I
International Cons Airlines Group
02 April 2020
IAG further reduces capacity and accesses job retention and wage
International Airlines Group (IAG) continues to take every
action to reduce operating expenses and improve cash flow.
On 16 March 2020, IAG announced that it would reduce capacity,
expressed in terms of available seat kilometres, by at least 75 per
cent in April and May compared to the same period in 2019. In
recent weeks, IAG's airlines have been helping to repatriate
customers throughout the world and to conduct cargo flights
delivering vital medical equipment and supplies, food and other
products to combat COVID-19 and keep global supply chains
Following a review, IAG has decided to reduce capacity further
to an approximately 90 per cent reduction in April and May compared
to last year.
British Airways accesses UK Job Retention Scheme
As a result of the significant decline in flying, British
Airways is making use of the UK's COVID-19 Job Retention Scheme to
help UK-based employees placed on furlough. It has today reached
agreement with trade unions, GMB and Unite, to apply this scheme to
more than 30,000 cabin crew and ground-based employees in April and
May. Under this scheme, furloughed employees will receive 80 per
cent of their base pay and of certain allowances. This agreement is
subject to union ratification.
British Airways has also reached agreement with its 4,000 pilots
to take four weeks of unpaid leave in April and May.
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.
Chief Financial Officer
2 April 2020
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(END) Dow Jones Newswires
April 02, 2020 12:38 ET (16:38 GMT)