Caribbean Airlines aims to cut cost and support recovery

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Caribbean Airlines aims to cut cost and support recovery

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https://guyanaaviation.com/2020/09/29/c ... -recovery/

Caribbean Airlines aims to cut cost and support recovery
Wayne Farley
30 September, 2020

Caribbean Airlines announced that effective October 15, 2020 it will implement some tough short-term measures to help decrease its operating expenditure in order to secure the longer term viability of the airline.

The airline did not outline the measures in a communique disseminated on Tuesday, but The Trinidad Express is reporting that the carrier will reduce its salary bill by sending some employees on no-pay leave, reducing the salaries of others and temporarily laying off a third group.

The measures will affect about 1,700 employees to varying degrees, but the most immediate impact will be felt by the company’s 250 pilots and about 375 flight attendants, according to the Sunday Express.

“The COVID-19 pandemic has had a devastating impact on airlines worldwide, and while our employees and Management Team have remained resilient, diminishing revenue has meant that our costs have outstripped our earnings,” the airline’s communique said.

Since May, the Trinidad based carrier was mostly funded from a US$65 million (TT$442 million) government-guaranteed loan to pay salaries and eased some of the debt the airline had acquired during its operations.

With the closure of borders in Trinidad and other some other Caribbean countries, Caribbean Airlines operations are limited to cargo flights, the domestic air bridge between Trinidad and Tobago, the Kingston and Barbados based commercial services and special government approved flights in and out of Trinidad.

The airlines said in its statement that these temporary targeted measures are aimed at reducing costs, and will not impact the quality of service, safety and customer care. It is committed to its mandate to connect the people of the region in spite of the challenges caused by COVID-19.
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Re: Caribbean Airlines aims to cut cost and support recovery

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https://newsday.co.tt/2020/09/29/cal-an ... e-airline/

Caribbean Airlines announces temporary lay-offs, salary cuts to save airline
CARLA BRIDGLAL
29 September, 2020

Caribbean Airlines has announced furloughs and salary cuts as short-term measures to save the struggling state carrier, starting from October 15.

In a statement on Monday, CAL said these temporary measures will support the airline’s recovery.

The airline industry has been among the hardest hit by coronavirus travel restrictions, with demand for air travel nosediving.

CAL has tried since the covid19 pandemic to expand its routes up the islands to capitalise on the gap in service when LIAT was liquidated in June, but international/regional travel originating in TT, save specially approved flights, has been grounded, as the government has kept the borders closed since March.

In April, CAL sought a government-guaranteed US$65 million loan to help it stay afloat, but that short-term solution is nearing its end.

“Reduced demand due to the global pandemic has presented significant challenges to Caribbean Airlines’ revenue and cash position and it must now take further steps to streamline expenses and its manage cash,” CAL said.

The airline said that after careful consideration, including discussions with key stakeholders, it intends to implement cost-cutting measures including:

- Salary reductions for eight months from mid-October 2020 for those paid more than $7,500 per month, on a tiered structure.

- Temporary layoffs for approximately one third of employees for three months, depending on their role and the current needs of the business.

- Continued cost reductions wherever possible, including reducing contractors and temporary workers and allowances that are not relevant at present.

It said, “The airline confirms that standard industrial relations criteria were used to select the employees who will be temporarily laid off. The leadership team recognises the impact of these measures on its employees and their dependents and has put systems in place to support those affected.”

Current operations are not affected by the temporary layoffs, including cargo/freight services, the airbridge, Kingston and Barbados-based commercial services and special government approved flights to/from Trinidad and Tobago.

Last year CAL managed to turn a profit for the first time in years.
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