Stansted clips its wings in bid to survive COVID-19 turbulence
Stansted Airport owner MAG is introducing stringent cost-cutting measures to ensure it emerges into clear blue skies through the storm clouds of the COVID-19 crisis.
Charlie Cornish, CEO of Stansted owner MAG, said the company was determined to emerge stronger but there would be some pain before the gain for executives and staff alike. It is introducing:-
- Enforced annual leave
- Reduced working hours
- Temporary pay cuts and lay-offs
Cornish stressed that the executive team were taking a pay cut with immediate effect and the company had frozen recruitment and paused capital expenditure. He said: “The COVID-19 outbreak has led to a rapid and unprecedented reduction in demand for air travel in and out of the UK and MAG airports are seeing much lower passenger numbers as a result.
“We expect demand to return as the COVID-19 peak passes, but this temporary and dramatic downturn requires us to act now to protect our position at this critical time.
“Over the next few days we will be consulting with our colleagues and unions and introducing measures to reduce our costs and preserve the group’s resources at this critical time.
“These are difficult decisions for MAG and have not been taken lightly. We recognise the impact they will have on our people and we will be consulting with our colleagues. Our aim will always be to protect jobs wherever possible, and we need to take these steps now to ensure the company’s future.
“It is too early to predict with any accuracy the long-term effects of this crisis. We are seeing many of our airlines and supply chain partners make similar announcements and we are doing what we need to do in the face of an unpredictable and fast-moving situation.
“Over the past decades, the aviation industry has been one of this country’s success stories. We provide vital services to the economy and to regions dependent on air connectivity. Aviation is also essential to some of our most important industries and in forging trading relationships.
“I am in no doubt that this outbreak is the greatest threat the UK’s travel sector has ever faced. Government needs to take decisive action now to make clear its total and unwavering support for airports, airlines and other travel companies.
“The UK depends on air travel to supports its economy. The Government must stand behind the aviation industry to make sure it is still there and ready to help the economy recover once this is all over. We will continue to monitor the situation and make further announcements on MAG’s operations as the COVID-19 situation develops.”