Published on Wednesday, January 28, 2009
Virgin Atlantic is implementing a pay freeze in March in order to avoid redundancies.
The airline said the freeze would apply across its entire workforce, from ground crew to senior management and directors.
It said it remains confident it will achieve a profit in this current financial year until the end of February.
Chief executive Steve Ridgway 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.
“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.”
By Bev Fearis
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.