Etihad staff to take up to 50% pay cuts
Halted operations will have a significant impact on the airline’s business
Abu Dhabi’s Etihad Airways has announced staff across its sectors will be hit with a pay cut in April, with the deduction for some going as high as 50%.
In a statement to sister publication Arabian Business an Etihad spokesperson said: “In order to protect our workforce as much as we can, we have taken the very difficult decision to temporarily reduce the basic salaries of all staff, including executives, between 25% and 50% for the month of April, after which it will be reviewed.”
Housing allowances and education assistance will continue to be paid over this period.
The spokesperson added that the “incredibly difficult decisions” were being taken “to safeguard the future of Etihad and that of the Etihad family.” The spokesperson added that the pause on operations will have a significant negative impact on Etihad.
The UAE earlier this month halted all passenger flights to and from the country in a bid to stop the spread of COVID-19. Following that announcement, Etihad Aviation Group CEO Tony Douglas assured that the carrier could survive a period of zero passenger flights.
He said: “As the national airline, we stand in full support of the UAE government’s decision, and are confident that we’re well prepared to weather the commercial and operational impact this suspension will have on our services.”
According to updated figures from the International Air Transport Association (IATA), the aviation industry could lose as much as US$252 billion in revenue this year.