The British airline co-owned by billionaire Richard Branson revealed Tuesday that it would slash more than 3,000 jobs - approximately one-third of its workforce - as the ongoing global health crisis cripples flights globally.
With the flu ravaging international air transport throughout the past two months, Virgin Atlantic disclosed it was obligated to make the reductions in order to protect its financial future, adding that it was in discussions with the British authorities with regards a possible financial aid.
The airline said it has entered into a 45-day review period, during which time the company will work with the trade unions BALPA and Unite on the new reforms.
The company said that they have made it through many obstacles since their maiden flight more than three decades ago, but none has been as worse as the coronavirus crisis and the related casualties both financial and physical for so many people, Shai Weiss, chief executive officer, said.
The surprise announcement comes after competitor British Airways revealed they couldn't rule out the closing of their service in Gatwick. Pilots' union Balpa said the closure was "devastating."
Many prominent carriers have suffered since the pandemic has wreaked havoc to global travel. British Airways currently employs about 10,000 workers.
Virgin Atlantic has now affirmed that, after the lockout has been lifted, flights from Gatwick will not restart, with certain flights being moved to Heathrow Airport.
The carrier also confirmed that it would not continue to use its four-engine seven Boeing 747-400 jets and will fly a "simplified, greener fleet" of 36 twin-engine airplanes by 2022, which will be more energy-efficient.
Virgin is said to be seeking state assistance amounting to £500 million (US$ 612 million, EUR 564 million).
British budget carrier EasyJet has recently received a £600 million grant from the UK government, which deals with airlines on a case-to-case basis rather than complying with Virgin's push for a multi-billion pound government-funded pot for the entire British airline industry.
Last month, Virgin Atlantic came under fire when Branson requested British assistance to prevent the airline from total collapse.
Branson justified his actions in an open letter, saying the funding would be in the form of a business loan to be paid back.
Tim Alderslade, Airlines UK chief executive, said the problems that the UK aviation is dealing with cannot be overstated. Currently the market for passengers is near to zero and several airlines have halted operations altogether.
