VIRGIN AXE 3,000 IN SURVIVAL FIGHT
SIR Richard Branson’s Virgin Atlantic cut more than 3,000 jobs yesterday as the coronavirus crisis dealt another devastating blow to the travel industry.
The flagship airline announced plans to reduce its 10,500-strong workforce by 30 per cent as planes remain grounded by the flight ban.
Virgin will also abandon flights from Gatwick Airport as the company scrambles to slash costs in its biggest crisis.
Yesterday’s news came just weeks after founder Sir Richard warned that the airline could collapse without state assistance.
It also follows British Airways’ announcement last week that it is looking to make 12,000 workers redundant.
Virgin Atlantic’s chief executive Shai Weiss said the company needed to “reduce our costs, preserve cash and protect as many jobs as possible”.
He added: “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.
“I wish it was not the case, but we will have to reduce the number of people we employ.”
Brian Strutton, general secretary of pilots’ union Balpa, challenged the company to justify the severity of the cuts.
He said: “Our members and all staff in Virgin Atlantic will be shocked by the scale of this bombshell.
“Why is the Government sitting on its hands while aviation plunges further towards a death spiral?”
Oliver Richardson, Unite’s national officer for civil air transport, called the news a “devastating blow”. He added: “It is also premature as the Government’s job retention scheme is still up and running and being fully utilised by the company.”
Jim McMahon, Labour’s transport spokesman, called for the Government to provide a rescue package for airlines. He said: “This terrible news is heartbreaking for Virgin Atlantic staff and their families, and another major blow for the aviation industry.”
TheVirgin plan will cost 3,150 jobs, though some of the Gatwick flights will switch to Heathrow and others may resume if trade picks up.
Executives also want to operate with a “simplified, greener fleet” of 36 twin-engine aircraft and will not return to using its seven Boeing 747-400 planes, it was said.
Mr Weiss said that the company had suffered “severely reduced revenues” because of uncertainty over when flights will start again and “unprecedented market conditions”.
Prime Minister Boris Johnson’s spokesman said: “We continue to work closely with the sector and are willing to consider the situation of individual firms once all other Government schemes and commercial options have been explored.”
Sir Richard founded the Virgin empire and still owns 51 per cent of Atlantic through his Virgin Group. Delta Air owns the remaining 49 per cent.
The 69-year-old was criticised when he asked for a £500million state bailout for the airline, with his Caribbean hideaway Necker Island offered as security.
McDonald’s yesterday named 15 restaurants it plans to reopen for the first time since the coronavirus lockdown began. From May 13, customers will be able to order from the sites, mainly in London and the south-east, for delivery only.
The outlets will offer a limited menu, including some vegetarian options, delivered locally. They will open between 11am and 10pm.
The company will work with Just Eat and Uber Eats to deliver food to customers’ doors.
McDonald’s closed all its sites in March at the start of the lockdown.