Flydubai to cut employee salaries for three months over coronavirus

Salary reduction to take effect next month, says budget carrier

  
Flydubai Aircraft on the ground.

Flydubai Aircraft on the ground.

Flydubai/Handout via Thomson Reuters Zawya

UAE-based budget carrier flydubai will slash its staff's salary by up to 50 percent for three months starting April 2020 due to the impact of coronavirus on the travel industry.

The airline recently grounded all its passenger aircraft for a period of two weeks to comply with a government directive aimed at reducing the spread of the deadly coronavirus.

With its latest decision, Flydubai joins several airlines that have taken drastic measures to save costs, as the coronavirus pandemic continues to wreak havoc on businesses worldwide.

All inbound, outbound and transit flights in the UAE have temporarily been shut down as part of precautionary measures to combat the virus, which has so far infected nearly 800,000 people around the world.

“The airline has had to adapt to this fast-evolving situation and to protect employment has taken the decision to rescue the salaries of employees for a three-month period from April 2020,” the airline told Zawya on Tuesday.

The airline said the decision has not been taken lightly, citing that it has been made to “offer stability at a time of uncertainty” and to lessen the impact on all of its workers.

It assured that steps have been taken to avoid employees at a lower grade from being impacted by the salary cut, adding that employee benefits will not be affected.

“These measures have been taken by the senior management team with a heavy heart but with the aim of retaining our employees and ensuring we are in the best possible place when our regular schedule resumes,” said flydubai.

"The reduction is based on grade and is between 25 percent and 50 percent," it added. 

Airlines have been among the worst hit by the economic fallout of the global pandemic. Those in the UAE and other Middle East countries alone could face revenue losses worth $4.9 billion (17.9 billion UAE dirhams), according to the International Air Transport Association (IATA).

Emirates Group, the operator of Emirates Airline, as well as Etihad, had earlier announced their decision to cut staff salaries by up to 50 percent.

On Monday, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) announced that a new resolution has been passed to allow companies in the private sector affected by the coronavirus to reduce the salaries of their workforce.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.Maceda@refinitiv.com

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© ZAWYA 2020