Wizz Air to cut almost 20% of workforce
Low cost carrier Wizz Air, which boasts bases in Skopje, Tuzla and Belgrade in the former Yugoslavia and employs hundreds of locals, has announced it will dismiss 1.000 staff members, or some 19% of its entire workforce as a result of the coronavirus Covid-19 outbreak. The carrier did not detail which markets would be affected. As well as redundancies, additional employee furlough measures have been and will be taken "in the short term" as a result of ongoing travel restrictions. Wages are also being cut for the remaining workforce, with pilots, cabin crew and office staff losing an average of 14% of their salaries for the whole year, while the Chief Executive, Board of Directors and all senior officers will lose 22% of theirs.
The airline’s CEO, Jozsef Varadi, who recently criticised plans by governments to provide state aid for their national carriers, said Wizz Air has taken various initiatives to protect the company during the Covid-19 pandemic and is reviewing the competitiveness and allocation of assets. "We are also working to further improve our strategic, cost and cash position in the aftermath of this crisis to ensure we can deliver our long-term growth target. Wizz Air undoubtedly remains best placed for long-term value creation in the European aviation industry due to its low fare - low cost business model and unique positioning as the market leader in the growing Central and East European market. The company is expecting to deliver significant shareholder value, environmental benefits and employment opportunities in the years to come", Mr Varadi noted.
Wizz Air is also working with suppliers to reduce contracted rates and improve payment terms. The budget airline is currently operating only 3% of its pre-coronavirus capacity. The airline expects to maintain its plans to grow capacity by an average of 15% annually as markets normalise. The launch of Wizz Air Abu Dhabi is also progressing in line with the company’s initial timeline. So far, Wizz Air has downgraded its year-round service between Milan and Ohrid into seasonal summer flights, with more network changes possible in the weeks and months ahead.
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