British Airways is making use of the Covid-19 job retention scheme on offer in the UK, with as many as 30,00 staff set to be furloughed. Under this scheme, employees will receive 80 per cent of their base pay and of certain allowances.
Stephen Gunning, chief financial officer for the company, said all profit for the financial year would now be allocated to the voluntary reserve in order to protect the liquidity of the company.
British Airways is expected to announce it will suspend 36,000 staff as the carrier battles the fallout from the coronavirus pandemic. However, no staff are expected to be made redundant.
A brief statement from the British flag-carrier said: “Due to the considerable restrictions and challenging market environment, like many other airlines, we will temporarily suspend our flying schedule at Gatwick.”
British Airways-owner IAG added it was exploring a number of operational and treasury initiatives to improve further its cash flow and liquidity and would update the market in due course.
Having previously pledged to work with carriers to overcome the financial difficulties created by the coronavirus pandemic, chancellor Rishi Sunak has now advised airlines to find other forms of funding.
British Airways and Royal Air Maroc have announced a new codeshare agreement which will open up new routes across Morocco including Casablanca and Agadir.