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Come fly with me …soon, please …

Over 35 billion dollars of planes sit in the desert while the world waits out the final numbers to impact the airline industry. Part of the on going issue with running a aviation company is the cost of the capital to buy, lease and run the plans they need and use. Yes, fuel costs have come down, but competition has gone through the roof, so margins are low and the ability to stop for a period of time is not an option in GFC, Covid 19 or recession environments, as you will see below.

Cathay Pacific to cut 8500 jobs, one quarter of all staff as COVID-19 hits bottom line …

Lufthansa Group employs over 135,000 people, half in Germany—where half the cuts will take place, many in administration and the group’s third-party services business.

BA said at the end of April that it would cut up to 12,000 jobs—as the IAG subsidiary employs around 42,000 people

The Emirates Group might end up with the heftiest cuts of all, as Bloomberg has reported a likely reduction in the order of 30,000. However, the Dubai flag carrier, which employs around 105,000 people around the world, has been vague about totals. So far, Emirates has reportedly laid off more than 7,200 cabin crew, pilots, and engineers.

American, which has almost 129,000 employees, will be cutting 30% of its management and support services. That means roughly 5,000 jobs will go.

Scandinavian Airlines, the joint flag carrier for Denmark, Norway, and Sweden, said it could cut up to 5,000 jobs, or almost half its workforce.

SAS rival Norwegian saw four of its Swedish and Danish subsidiaries file for bankruptcy in late April. It also ended a range of staffing contracts in the U.S. and Europe. Altogether, 4,700 jobs are at risk.

Easy Jet – The British low-cost airline EasyJet is cutting around 4,500 jobs, or 30% of its workforce—and it’s warning of even more if the British government maintains two-week-quarantine requirement for people arriving in the U.K.

Virgin Atlantic said  3,150 jobs would be cut, so the airline could “return to profitability in 2021.”

Ryanair (also a vocal opponent of the U.K.’s quarantine requirements) said  it would shed around 3,000 jobs, or 15% of its workforce.

Virgin Australia has shed around 4,000 jobs under new management bain Capital out of the USA. CEO dismissed in October 2020

Qantas has shed around 3,500 jobs under Irish CEO Alan Joyce

By Fortune’s calculation, the news takes the total number of announced major-airline job cuts up to around 70,000—and more will surely come. Taking into account looming cuts at suppliers such as Boeing, the coronavirus pandemic now seems set to claim many more than 100,000 jobs in the sector

Dash Editor

Self-confessed confused news junkie, with lifelong additions to coffee, great conversations, perfection in all its forms, cold wine, hot music and puppy dogs.

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