British Airways Grounds Flights and Suspends Over 35,000 Staff Due to Coronavirus

Major airlines across the world have been left effectively paralysed by the widespread effects of Coronavirus and British Airways in no exception. In the latest blow to the aviation industry, the company has announced that it will be suspending around 36,000 staff and grounding flights as the aviation industry grinds to a halt and the pandemic continues to wreak havoc on global economies.

The exact details of the suspension are yet to be revealed as the airline is currently in talks with the Unite union, which is the second largest trade union in the U.K. The union’s priority will be to ensure that workers are treated fairly during the crisis and do not lose their jobs unfairly. It is thought that the suspension will affect around 80% of the current workforce at British Airways and it is expected that staff will continue to be employed by the company and can therefore claim 80% of their salary under the government’s coronavirus job retention plan, up to a maximum of $3,100 per month.

The suspension comes after it was revealed that British Airways pilots had agreed to taking two weeks’ of unpaid leave alongside a 50% pay cut in April and May. This was following news that the airline would be suspending all flights from London Gatwick, which has been quoted as being its ‘second biggest hub’. And although commercial flights have been cancelled, it has been reported that BA flights are still being used for repatriation flights to help bring British people home after being left stranded abroad due to the coronavirus pandemic.

British Airways is not the only airline to be hit by the crisis, with the recent collapse of domestic airline Flybe and EasyJet grounding its entire fleet in recent weeks. Virgin Atlantic has also been in the public eye recently after it requested a billion dollar bailout from the UK government, which has been met with much criticism from both the general public and the media. Many have been quick to point out that Richard Branson is worth around 4bn dollars, owns his own private island and even once tried to sue the NHS for a breach of contract, so could show some compassion for his employees at this time of national crisis. Others have questioned where his apparent ‘philanthropic’ values are given that there has been no word of support from the Branson camp since the outbreak began, despite many celebrities and other high profile individuals donating money to various causes.

Thankfully for British Airways it would appear that they have sufficient resources within the business to remain afloat without the need for a cash injection from the government. That said, the aviation industry trade body has suggested that around $200 billion of state money will be needed to help the aviation industry survive this unprecedented crisis.

British Airways has a long and proud history which spans over 100 years. It’s roots lie in a company called Aircraft Transport and Travel Limited (AT&T) who launched the world’s first international scheduled air service in August 1919 and took place between London and Paris. The very first flight left from Hounslow Heath, which is situated close to the current Heathrow Airport and on it was just one passenger with a large cargo of goods which included newspapers, Devonshire cream, jam and grouse. British Airways PLC as a brand name came into existence in 1974 after British Overseas Airways Corporation (BOAC) fused with British European Airways (BEA) and their associated companies. Although originally state owned, it was privatized in 1987 and has remained a major player within the commercial aviation industry ever since.

It is fair to say that British Airways has long had a strong and positive reputation for being a good and ethical company and its commitment to try and ensure that no staff lose their jobs during the coronavirus outbreak is commendable. With many airlines facing financial ruin, there is undoubtedly panic across the entire industry and the uncertainty about when flights may resume only adds to the stress and worry about what the future may hold. Naturally any company that is operating during this turbulent time is likely to face the same problems which is why regular communication and internal stakeholder dialogue is essential to keeping everyone informed and updated. The situation is changing daily and given the fact that the world has not faced a health crisis like this since the Spanish Flu, situations are changing daily. As more is known and understood about the virus, the future path of emerging from this crisis will become apparent. For the moment however, it is a case of following the guidelines regarding social distancing, washing hands regularly and avoiding the spread of infection.