EasyJet plans to close bases at Stansted, Newcastle and Southend – and cut staff by as much as 4,500
Date added: 1 July, 2020
EasyJet says it has begun consultations on plans to close its bases at Stansted, Southend and Newcastle airports, though it will keep routes using those airports. It will no longer keep planes there, or base crew there. EasyJet may also be cutting its number of employees by up to a third, about 4,500 out of 15,000 overall, due to Covid. About 1,300 cabin crew could lose their jobs, and also 727 pilots (which is about a third of the total). The Unite union said “There is no need for this announcement at this time, especially since Easyjet has taken a multi-million pound government loan which it ought to be putting to use defending UK jobs.” But there is little demand for flying at present, and no certainty about Covid in the coming months. Easyjet currently has 11 bases in the UK, with 163 aircraft, serving 546 routes. There are 7 aircraft based at Stansted, with 335 crew. At Southend, there are 4 aircraft and 183 crew; and at Newcastle there are 3 planes and 157 crew. The job cut proposals are not limited to the bases that may close. EasyJet does not expect 2019 levels of demand to be reached again until 2023.
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EasyJet plans to close bases and cut staff
30.6.2020 (BBC)
EasyJet says it has begun consultations on plans to close bases at Stansted, Southend and Newcastle.
It follows an announcement by the airline that it may need to reduce staff numbers by up to a third because of the coronavirus pandemic.
The Unite union said nearly 1,300 UK crew members faced losing their jobs.
Pilots’ union Balpa said it had been told by EasyJet that 727 of its UK-based pilots were also at risk of redundancy. That is equivalent to one in three of its pilots, Balpa said.
EasyJet chief executive Johan Lundgren said: “The lower demand environment means we need fewer aircraft and have less opportunity for work for our people.
“We are committed to working constructively with our employee representatives across the network with the aim of minimising job losses as far as possible.”
However, Balpa general secretary Brian Stratton said the job cuts were “an excessive over-reaction”.
“EasyJet won’t find a supply of pilots waiting to come back when the recovery takes place over the next two years.”
And Unite said the plan to make 1,290 cabin crew redundant was a “massive blow” for a “battered industry”.
“There is no need for this announcement at this time, especially since Easyjet has taken a multi-million pound government loan which it ought to be putting to use defending UK jobs,” said national officer for civil aviation Oliver Richardson.
Easyjet currently has 11 bases in the UK, with 163 aircraft, serving 546 routes.
Even though it is looking at closing the Stansted, Southend and Newcastle bases, it said the airports would remain part of its route network.
That means it will continue to fly in and out but will not have aircraft and crew based permanently at the airports.
‘Saddened’
Easyjet has seven aircraft based at Stansted, with 335 crew. At Southend, there are 183 crew and four aircraft. And there are three aircraft based in Newcastle, with 157 crew.
The job cut proposals are not limited to the bases that may close, a Unite spokesman said.
Newcastle Airport said it was “saddened to hear of possible job losses and the significant impact this would cause.”
“This is very disappointing for the airport, airline and the North East as a whole and we sympathise with everyone affected by this announcement.”
Travel restrictions
EasyJet said in May that it planned up to 4,500 job cuts as it struggled with the collapse in air travel due to the coronavirus crisis.
It has started to fly passengers again, but does not expect 2019 levels of demand to be reached again until 2023.
Airlines have been hit hard by lockdowns and travel restrictions around the world, with many announcing job cuts.
Reuters reported on Tuesday that Air France/KLM would present a plan to unions on Friday to cut more than 6,500 jobs over the next two years as the airline deals with the effects of the coronavirus crisis.
In June Lufthansa said it planned to cut 22,000 jobs, and British Airways said in April that it could cut up to 12,000 jobs from its 42,000-strong workforce.
https://www.bbc.co.uk/news/business-53239256#
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EasyJet to close hubs at Stansted, Southend and Newcastle airports losing 4,500 jobs
By Stephen Moyes (The Sun)
30 Jun 2020
EASYJET will sack up to 4,500 staff and close hubs at Stansted, Southend and Newcastle airports in another blow to the travel industry.
The devastating announcement was made today as the airline also admitted the rest of its UK network is “under review”.
EasyJet are to sack 4,500 staff and close three of its airport hubs
EasyJet are to sack 4,500 staff and close three of its airport hubsCredit: PinPep
Pilots union BALPA said 727 cockpit crew faced the axe – around one in three of easyJet’s 2,300 pilots in the UK.
It’s another bitter pill to swallow for an aviation industry that has been hammered by coronavirus with flights grounded and borders closed.
The airline will still continue to run flights to the airports, even if they no longer operate as hubs.
Pilots union BALPA said 727 cockpit crew faced the axe – around one in three of easyJet’s 2,300 pilots in the UK.
EasyJet is expected to lose between 4,500 and 5,000 jobs across its entire network – around 1,900 UK employees are due to go, including 727 pilots.
Airline bosses gave the grim news to union chiefs of pilots and crew, and devastated staff were left gobsmacked.
An easyJet spokeswoman told The Sun: “As part of our update to the market on 28 May 2020, easyJet set out that it may need to reduce staff numbers by up to 30% as well as optimise its network and bases as a result of the pandemic.
“easyJet has today started formal consultation on proposals with employee representatives including Balpa and Unite on all of its UK based pilots and crew.
“The proposals include the potential closing of three of its bases in the UK – London Stansted, London Southend and Newcastle. These airports would remain part of easyJet’s route network.”
EasyJet told how it won’t reach expected revenue levels post lockdown until 2023.
EasyJet currently has 163 aircraft in the UK at 11 airports, serving 546 routes and flying more than 52 million passengers a year.
Johan Lundgren, easyJet CEO, said: “These are very difficult proposals to put forward in what is an unprecedented and difficult time for the airline and the industry as a whole.
“We are focused on doing what is right for the company and its long term health and success so we can protect jobs going forward.
“Unfortunately the lower demand environment means we need fewer aircraft and have less opportunity for work for our people.”
Unfortunately the lower demand environment means we need fewer aircraft and have less opportunity for work for our people
Brian Strutton, pilots union Balpa general secretary, said: “We know that aviation is in the midst of the covid-19 crisis and we had been expecting easyJet to make an announcement of temporary measures to help the airline through to recovery.
“But this seems an excessive over-reaction and easyJet won’t find a supply of pilots waiting to come back when the recovery takes place over the next two years. ”
Last November, easyJet acquired Thomas Cook’s slots at Gatwick and Bristol airports for £36million.
The aviation sector has been severely hit by coronavirus, with British Airways haemorrhaging £20million a day.
Bosses want to axe 12,000 staff and ‘fire and re-hire’ the remaining 36,000 staff on lower wages.
Meanwhile, The Sun understands Virgin Atlantic’s future is “bleak” as it emerged yesterday they can’t afford to pay staff for holidays.
Airline insiders admitted it is “touch and go” if Sir Richard Branson’s carrier will survive the coronavirus pandemic meltdown.
Staff were reeling last night after being told bosses will not top up monthly furlough salary payments with annual leave taken.
Virgin said: “Any annual leave you have accrued while on furlough leave is to be considered taken.”
Bosses went on: “When you return to work your remaining annual leave allowance will be your usual annual entitlement, minus any annual leave you have already taken this year, which includes annual leave accrued and taken during furlough leave.”
Rachel Clarke, head of people services at Virgin Atlantic and Virgin Holidays, told staff: “We recognise this is a different approach to the government guidance, and we understand this is a big ask
“We’re asking for your help with annual leave, because unfortunately, as we strive to safeguard the future of the business, it’s just not affordable at this time.”
The airline is planning to re-start passenger flights from July 20.
Staff who get the boot from the airline after that date will receive redundancy in August on a contractural minimum of 28 days notice.
Around 8,000 Virgin workers were furloughed at the start of lockdown, with staff paid 80 per cent of their salaries up to £2,500 a month for three months.
The scheme has been extended until October but cash-strapped Virgin has to contribute to the scheme from September.
A Virgin Atlantic spokesperson told Sun Online Travel: “Following the rapid acceleration of Covid-19 and extensive travel restrictions, coupled with a sharp drop in customer demand, it is imperative for Virgin Atlantic to take swift and decisive action to safeguard its future.
“Therefore, any annual leave our people have accrued while on furlough leave is to be considered taken. This equates to two days for every month of furlough leave.
“We’d like to thank all our people for their continued commitment and solidarity and the sacrifices they have made to support the company during the most challenging period in our history”.
In terms of a battle for survival, the airline added: “We continue to explore all available options to secure additional external funding as part of a comprehensive, solvent recapitalisation of the airline. As per the Chancellor’s letter of 24 March, HM Government is considered as a lender of last resort, and rightly so.
“We greatly appreciate the support our stakeholders have shown to date and believe we can deliver a comprehensive financing package that ensures Virgin Atlantic continues to provide essential connectivity and competition to consumers and businesses in Britain and beyond.”
https://www.thesun.co.uk/travel/11990915/easyjet-close-hubs-stansted-southend-newcastle/
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Posted: Wednesday, July 1st, 2020. Filed in General News, News about Airports, Recent News.
