Virgin Atlantic to cut up to 600 jobs

Virgin Atlantic, the airline controlled by Sir Richard Branson, is planning to cut up to 600 jobs from its 8,500 workforce as it reacts to the global downturn.

By Alistair Osborne, Business Editor

The carrier briefed staff and union representatives this morning as it began a statutory 90-day consultation period. The key unions involved are Unite and pilots union Balpa.

Virgin hopes to avoid compulsory redundancies but cannot rule them out. It is offering all its staff, including cabin crew and check-in personnel, the opportunity to take unpaid leave while it attempts to ride out the recession.

Steve Ridgway, Virgin Atlantic’s chief executive, said: “No airline is immune from the recession and we continue to reshape our business to ensure we’re in the best position for the longer term.

“With falling demand for travel, airlines have to reduce their costs through a variety of measures including cutting capacity, freezing pay, unpaid leave and, regrettably, adjusting staff numbers. We need to stay healthy so we’re ready to grow again when economic conditions allow.”

Virgin has already imposed a pay freeze for the coming year and expects to cut capacity by around 10pc for the summer season by reducing frequencies to certain destination.

Spokesman Paul Charles said the airline still expected to report a profit for the current financial year, which closes at the end of this month.

http://www.telegraph.co.uk/finance/newsbysector/transport/4601462/Virgin-Atlantic-to-cut-up-to-600-jobs.html