600 jobs at risk at Virgin Atlantic

Virgin Atlantic has said it is consulting with staff over the possibility of making up to 600 redundancies across the business.

Steve Ridgway, the airline’s chief executive, said “No airline is immune from the recession and we continue to reshape our business to ensure we’re in the best position for the longer term“.

The airline is looking to cut costs due to a slump in demand for travel as consumers cut back during the economic downturn.

Virgin, which has a global workforce of 8,500, is to begin a statutory 90-day consultation period with its employees and the Unite and Balpa unions.

In related news, budget airline Ryanair is to axe 200 jobs due to cuts in its summer schedule at Dublin Airport.

The job losses will affect pilots, cabin crew and engineers.

Last week, British Airways (BA) announced it had made a loss of £70 million in the nine months to 31 December as a result of high fuel costs and the weak pound, compared to a pre-tax profit of £816 million a year ago.

Willie Walsh, BA’s chief executive, said the economic downturn will mean the company will have to make cutbacks and said talks with trade unions over “pay and productivity” have commenced.

Last month, the International Air Transport Association (IATA) warned that 2009 is set to be one of the most difficult years for the airline industry.

The association is forecasting a global fall in passenger traffic of 3% and a fall in air cargo of 5% for the year ahead.

In 2008, the airline industry suffered as a result of record oil prices, which saw over 30 airlines go bust including XL Airways, the UK’s third-largest tour operator, ATA Airlines, Aloha Airgroup, EOS, Maxjet, Oasis, Silverjet and Skybus Airlines.

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