Air­bus and Tui con­firm staff cuts as travel de­mand slides

The Daily Telegraph - Business - - Business - By Alan Tovey

AVI­A­TION jobs across Europe face a fresh blood­bath with plane maker Air­bus and hol­i­day com­pany Tui flag­ging up re­dun­dancy pro­grammes be­cause of Covid-19.

Guil­laume Faury, Air­bus chief ex­ec­u­tive, warned that his com­pany’s “life as a busi­ness is at risk” be­cause of coro­n­avirus. Air­bus has al­ready an­nounced it is cut­ting 15,000 of its staff – more than 10pc of the global work­force – as de­mand for air­craft plum­mets.

The com­pany’s UK op­er­a­tions, which em­ploy about 13,000, will shed 1,500 jobs. Air­bus had hoped to avoid com­pul­sory re­dun­dan­cies but these might now be nec­es­sary, Mr Faury sig­nalled to Euro­pean ra­dio sta­tion RTL, as he pre­pared for ne­go­ti­a­tions with pow­er­ful unions in France and Germany, where many of the jobs will be lost.

He added: “The cri­sis is ex­is­ten­tial. Our life as a busi­ness is po­ten­tially at risk if we don’t take the right mea­sures. We are tak­ing them.

“The sit­u­a­tion is so se­ri­ous, and we are faced with so much un­cer­tainty, that I think no one can guar­an­tee there won’t be com­pul­sory re­dun­dan­cies if we’re to adapt to the sit­u­a­tion, es­pe­cially if it evolves fur­ther.

“On the other hand, what I say clearly is that we have a lot of work to do; we will do ev­ery­thing we can to avoid ar­riv­ing at that point.

“There are lots of mea­sures we can take be­tween vol­un­tary re­dun­dan­cies and com­pul­sory re­dun­dan­cies.”

Mean­while, An­glo-Ger­man Tui con­firmed that it would axe 8,000 jobs af­ter sum­mer book­ings fell by more than 80pc and it bat­tled to cut costs by al­most a third. Tui hit out at “con­tin­u­ous changes in travel ad­vice by var­i­ous gov­ern­ments”, which are ham­per­ing at­tempts to of­fer hol­i­days and flights, re­sult­ing in fresh cuts to ca­pac­ity.

The com­pany called for a “re­gional risk as­sess­ment pol­icy be­ing ap­plied by each gov­ern­ment rather than a blan­ket travel pol­icy” to cre­ate more cer­tainty, as well as test­ing for Covid-19 to be of­fered on ar­rival at des­ti­na­tions, to avoid com­pul­sory quar­an­tines and move­ment re­stric­tions.

Book­ings for this sum­mer are 83pc lower than a year ago but Tui re­ported a “favourable devel­op­ment” in or­ders for next sum­mer, with book­ings up 84pc.

Guil­laume Faury, Air­bus chief ex­ec­u­tive, said he could not rule out com­pul­sory re­dun­dan­cies

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