British Airways to cut up to 12,000 jobs

LONDON, April 29 (MENA) - British Airways will cut up to 12,000 jobs as the airline’s owner warned the coronavirus recovery will take “several years.”

In a letter to staff Alex Cruz, chairman and chief executive of British Airways wrote: “In the last few weeks, the outlook for the aviation industry has worsened further and we must take action now.”

The airline suspended 22,626 employees earlier this month, making use of the U.K. government scheme offering to pay up to 80% of the wages of staff unable to work due to the virus.

But Cruz wrote on Tuesday: “There is no Government bailout standing by for BA and we cannot expect the taxpayer to offset salaries indefinitely. Any money we borrow now will only be short-term and will not address the longer-term challenges we will face.”

BA parent International Consolidated Airlines Group IAG said on Tuesday that up to 12,000 workers could now permanently lose their jobs, subject to consultations with trade unions. The announcement was made after the London close. IAG stock has fallen 65% so far in 2020.

The warning could come as major blow to U.S. airlines and carriers around the world, desperately hoping for a return to normality.

The global aviation industry has come to a near-standstill in recent months as countries around the world have implemented lockdown measures and travel restrictions. BA boss Alex Cruz wrote to the airline’s 45,000 workers in March in a note titled ‘survival of British Airways,” highlighting the severity of the current situation.