Virgin Atlantic CEO takes 20 per cent pay cut on coronavirus fears
Virgin Atlantic chief executive Shai Weiss will take a 20 per cent pay cut between April and June as the world’s airlines continue to be battered by the coronavirus outbreak.
The rest of the executive team have agreed to a 15 per cent decrease as the Sir Richard Branson-backed airline battles the slump in demand caused by illness fears.
The company has also proposed to defer all annual pay increases from March until August, when it will reassess affordability based on the impact of Covid-19.
Additional measures include a company-wide recruitment freeze, restrictions on all non-essential staff travel and training, and the option of two weeks unpaid leave for ground-based employees.
Virgin also said that it would make further changes to its flying programme as the situation evolved, adding that it would defer its Heathrow to Sao Paolo service until the autumn in a bid to cut cost.
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This morning it was announced that Virgin would follow the lead of fellow airlines such as British Airways and waive the flight date change fee for tickets issued in March.
In a statement, the company said: “Virgin Atlantic has faced previous adversity and challenges over the years and through these sensible steps we will ensure that we are in a stronger position once the impact of Covid-19 stabilises”.
The decision came on a day of chaos for airlines, with regional carrier Flybe reportedly on the brink of going bust as talks with the government fell through.
In addition, German airline Lufthansa said that it would ground 150 of its 700 planes as spooked customers continued to shun flights due to the virus.
A Lufthansa spokesman says: “We are dynamically adjusting our plans to reflect extraordinary circumstances”.
Earlier today Wizz Air also announced that it could cut up to 10 per cent of its capacity from April.
Yesterday senior airline bosses had warned that the worst was yet to come for the global aviation industry, which industry body IATA has said may take a $30bn hit this year due to the outbreak.
Speaking at a conference in Brussels, IAG boss Willie Walsh and Ryanair chief Michael O’Leary said that the next two to three weeks could see a further slump in bookings.