is to introduce a pay freeze from March in order to stay in the black and protect jobs during the recession.
Steve Ridgway, Virgin Atlantic’s chief executive, said: “During a recession, we all have to act responsibly to ensure that jobs are protected and that consumers get the best service. A pay freeze among our staff will help us remain strong during a period of lower demand for air travel.”
He added: “While consumers are benefiting from the lowest ever fares to some of our destinations, it means that our revenues will be lower this year and so we have to reduce our costs and capacity as a result. We will fly where there’s demand but won’t be irresponsible and run services for the sake of it. Tougher economic times mean we have to take measures which will protect our people over the longer term.”
The airline also said that it expects to make a profit in its current financial year, which ends in February, because of decisions taken previously to reduce costs and delay aircraft deliveries.
Virgin Atlantic has announced it is introducing a pay freeze for its staff to ensure the company “remains in a strong position during the downturn”.
The airline said the move covers all staff from senior directors to ground crew and comes into effect in March.