British Airways expected to suspend 36,000 staff

KUALA LUMPUR (April 2): British Airways (BA) is soon expected to announce that it will suspend around 36,000 staff, reported the BBC today.

It was reported that the flag carrier had been negotiating with the Unite union for more than a week and that they “have reached a broad deal”.

This deal “means that up to 80% of BA cabin crew, ground staff, engineers and those working at head office will have their jobs suspended but no staff are expected to be made redundant” reported the broadcaster.

The staff impacted by this development will, however, still get “some of their wages through the government's coronavirus job retention scheme, which covers 80% of someone's salary capped at a maximum of £2,500 a month”, said the report.

Airlines have been “haemorrhaging cash” owing to cancelled bookings and the International Air Transport Association foresees carriers suffering losses of almost US$40 billion over the next three months.

In Malaysia, it was reported by theedgemarkets that AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said he is currently in discussion with the government to obtain a loan for the budget airline as a means to further support its current cash position amid a tough operating environment.

AirAsia’s net cash position stood at RM2.2 billion as of end-2019. The group recently grounded operations for a month amid the movement control order imposed from March 18 to April 14.

Fernandes said with travel restrictions imposed to curb the spread of the COVID-19 outbreak, airlines worldwide are struggling as they are hit hard with a slump in sales.

However, he remains optimistic as the company reopens for sales at the end of the month.

Stay calm. Stay at home. Keep updated on the latest news at www.EdgeProp.my #stayathome #flattenthecurve