Virgin Atlantic has announced plans to downsize it business in response to the severe impact of the Covid-19 pandemic on the global economy. The London-based carrier said it expected a recovery in aviation traffic to pre-crisis levels to take up to three years.
In response, a number of job losses have been announced, with 3,150 roles to go across the carrier. Working closely with unions BALPA and Unite, a company-wide consultation period of 45 days has begun, Virgin said in a statement.
The new, small Virgin Atlantic is expected to fly only wide-body, twin-engine aircraft from London Heathrow and Manchester to the most popular destinations. The carrier will no longer use its seven 747-400s, with four A330-200 aircraft retiring in early 2022 as planned.
By 2022 the simplified fleet will comprise of 36 twin engine aircraft – down from 45 planes now. As a result, the airline said it would move its Gatwick operation to Heathrow, temporarily suspending flights from the south London airport. However, the airline said it intended to retain its slot portfolio at Gatwick, so a return can be made in line with customer demand.
Shai Weiss, chief executive of Virgin Atlantic, commented: “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. However, to safeguard our future and emerge a sustainably profitable business, now is the time for further action to reduce our costs, preserve cash and to protect as many jobs as possible. It is crucial that we return to profitability in 2021.”