Swiss International Air Lines (SWISS) has announced that around half of the aircraft making up the short-haul and long-haul fleets have been provisionally taken out of service in order to save costs.
Furthermore, the airline has made substantial reductions to its flight schedules due to the worldwide impact of the coronavirus (COVID-19) crisis.
“Aviation is particularly hard hit by the impact of the corona crisis. To compensate for the sharp fall in demand and resultant lost revenue, SWISS has decided to take immediate further precautionary action to secure liquidity,” the airline said in a recent announcement.
To compensate for the revenue lost as a result of international restrictions and the sharp fall in demand, SWISS said it would take further precautionary action to safeguard liquidity and revenues over the coming months.
For the time being, the measures concern the postponement of variable salary components to the end of this year. The flying personnel will contribute to these measures in line with agreements with SWISS’ social partners. The management board and senior management will also make an appropriate contribution.
In addition, all further recruitment will be halted. Apprentice training places and internships are the only exceptions. Employment agreements which have already been issued will be honoured.
SWISS said it is in close contact with the authorities and will initially apply for short-time working hours for cockpit and cabin staff. Further areas on the ground are under consideration.
Last week, the International Air Transport Association (IATA) stressed the need for “urgent action” to safeguard the industry. The association said that the growing spread of Covid-19 to more than 80 countries has impacted pre-bookings and may cost the airline industry up to 113 billion dollars in lost revenue this year.