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The aviation industry is one of those that are heavily affected by travel restrictions. Airlines like Flybe in Europe and Air Mauritius in Southern Africa have both filed for administration and ceased operations. Local airlines in Nigeria are so far keeping up. However, Arik Air has just told its employees that they are cutting salaries by 80 per cent.
Arik workers received a memo with this information on Thursday from the company’s Chief Executive Officer, Roy Ilegbodu. The memo also informed them that there was a decision by the management to put 90 per cent of Arik staffs on leave indefinitely.
Arik Air staffs on indefinite leave which will begin May 1, 2020, will not receive any salaries. However, a review will be carried out monthly based on this and workers will be notified of new decisions.
Mr Ilegbodu laments that the circumstances brought by the COVID-19 pandemic and the uncertainties are much likely going to last longer. They are therefore acting on that theory and pinning the decision on preserving the company from further losses.
Also, having seen their revenue streams fall by 98 per cent following the suspension of flights, they are unable to sustain operations for now. The drop in the value of the naira, as well as oil prices, has only made the revenue decline worse.
Read Also: Jobs affected by the coronavirus lockdown
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