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Hospitality & Travel

British Airways pilots accept 20% pay cut to end job losses dispute

The pilot union said that there will not be firing and rehiring of pilots.

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British Airways, Delta Air Lines, others to sack employees as Coronavirus hits airline operators' revenue, British airways set to suspend 32,000 employees

The British Airline Pilots Association have announced that British Airways pilots have accepted a deal that will temporarily cut their pay by 20% and limit job losses to just about 270, as against the initial planned 1,255.

This deal has resolved an ongoing bitter dispute between the pilots and the airline, as the carriers attempt to navigate through the global slump in air travel due to COVID-19.

The British Airline Pilots’ Association (BALPA), while disclosing that just over one-fifth of the 1,255 initially planned redundancies will be allowed to go, the terms of the agreement suggest that the pilots will accept an initial pay cut of 20%, which will gradually reduce to 8% over a 2-year period and then phase out entirely in a longer-term.

The pilot union said that there will not be firing and rehiring of pilots. The UK lawmakers had previously been very critical of British Airways over the alleged usage of furlough fire and rehire scheme, a strategy used by companies to force employees to accept inferior terms.

They accused the airline of planning to cut as many as 12,000 jobs and exploiting the coronavirus crisis to reduce staff and weaken the employment terms of those remaining.

Airlines have been seriously hit by government lockdowns and restrictions that are parts of measures to contain the spread of the coronavirus pandemic.

The hopes of the airlines recovering at the tail end of the profitable summer tourism season seem to have been dashed due to disruptions caused by a new wave of the virus outbreak in many countries, including France and Spain, with new travel restrictions being placed by them.

The International Air Transport Association (IATA), had revealed that a full recovery is unlikely before 2024, which is a year later than it had earlier predicted. The British Airways, while agreeing with this bleak assessment, says that it does not expect the airline to return to pre-COVID-19 business level until at least 2023.

The IAG Group, holding company for British Airways, said yesterday, “Therefore we need to act now to reshape our company for a very different future.”

The company has not received the billions in bailouts that some rival airlines like Air France-KLM and Deutsche Lufthansa received. The assistance they got was only limited to furlough funds to protect jobs and state-backed loans.

Global lockdowns imposed to fight the coronavirus pandemic have negatively affected air travel, thereby putting the future of many airlines in serious doubt.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Hospitality & Travel

FG approves reopening of Osubi Airport, Warri for daylight operations

Osubi Airport will be opened for operations in daylight in VFR conditions and observe COVID-19 protocols. 

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The Federal Government approved the reopening of Osubi Airport, Warri, Delta State for daylight operations on Monday.

This was disclosed by the Minister of Aviation, Hadi Sirika, via his Twitter handle on Monday.

According to him, the facility will be opened for operations in daylight in VFR conditions, while observing COVID-19 protocols.

READ: FG to spend N13 billion for automation projects in 4 airports

He tweeted, “I have just approved the reopening of Osubi Airport Warri, for daylight operations in Visual Flight rules (VFR) conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.”

VFR are a set of regulations under which a pilot operates an aircraft in weather conditions generally clear enough to allow the pilot to see where the aircraft is going.

READ: FG to open new Lagos International Airport Terminal in 2021

What you should know

  • The Airport, which was commissioned on 17th April 1999 by the former Minister of Aviation, Captain Briggs, is managed by the Federal Airports Authority of Nigeria (FAAN).
  • In 2020, the Federal Government, in a letter to all the aviation parastatals, had allegedly terminated the contract of Shoreline Oil Services Limited, the operator of the airport, with immediate effect, citing incompetence.
  • The facility has been a subject of controversy since it changed hands from the original owner, Shell Petroleum Development Company (SPDC), to Shoreline in partnership with the Nigeria National Petroleum Corporation (NNPC) in 2015.

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Business

NAHCO recalls suspended GMD

NAHCO recalled Adetokunbo Fagbemi, its Group Managing Director and Chief Executive Officer.

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NAHCO

The Board of Directors of Nigerian Aviation Handling Company Plc (NAHCO Aviance) has recalled Mrs. Adetokunbo Fagbemi, the Group Managing Director and Chief Executive Officer of the aviation handling firm.

The GMD was suspended over Management’s failure to diligently secure the delivery of a purchased equipment from vendor within the contracted period and Management’s inability to provide satisfactory/acceptable reason for the unreasonable long delay.

This was disclosed by the Board via a statement issued and seen by Nairametrics on Thursday.

It stated, “The Board is however pleased to inform the investing public and the Exchange that on, Tuesday, February 24, 2021, a satisfactory evidence of departure and arrival dates of the equipment has been received by the board from the equipment manufacturer.

“Consequently, the Board at its emergency meeting today, February 24, 2021, has recalled the Group Managing Director/Chief Executive Officer, Mrs. Adetokunbo A. Fagbemi from the suspension and she has resumed work.”

What you should know

  • The GMD was suspended by the Board at a meeting held on 27th of January 2021 in line with the Board’s earlier decision that if a certified bill of lading for the equipment was not received by 2nd February 2021, the GMD/CEO shall proceed on suspension with half pay until receipt of acceptable evidence of equipment shipment from the manufacturer.
  • Since Fagbemi commenced her suspension on February 3rd, 2021, Mr. Olumuyiwa A. Olumekun, the Group Executive Director, Corporate Services, has been acting as the GMD/CEO.

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