Business
Airbus CEO warns of compulsory layoffs as airline crisis deepens
TOULOUSE, France (Reuters) – Airbus AIR.PA has stepped up warnings of compulsory layoffs as air travel fails to recover as quickly as expected from the coronavirus crisis, putting itself on a potential collision course with unions and the French government.
The warning in a letter to its 130,000 staff from Chief Executive Guillaume Faury, seen by Reuters, marks a more pessimistic tone from the planemaker, which had previously said only that it could not rule out compulsory measures.
“I owe it to you to be transparent: it’s unlikely that voluntary departures will be enough,” Faury wrote in the letter distributed on Friday evening.
Unions and the French government have urged the Toulouse-based planemaker to avoid compulsory layoffs as it sheds up to 15,000 posts to cope with plummeting travel demand.
Airbus has repeatedly warned that the outlook is uncertain as the industry’s worst crisis hits aircraft deliveries and severely weakens airline finances.
But a disappointing rise in air travel over the summer has cast a fresh pall over the company’s biggest ever restructuring plans.
“Unfortunately, the recovery in airline traffic over the summer period has not been at the level the industry was counting on,” Faury wrote.
“We must now prepare for a crisis that will probably be even deeper and longer than the previous scenarios suggested”.
The group representing most of the world’s airlines, the International Air Transport Association, said last week that air traffic had failed to recover as quickly as expected during July, a key part of the peak season for airline revenues.
July traffic was down 80% compared with the same month of 2019, compared with a 94% drop at the low point in April.
IATA says inconsistent border rules are hampering the recovery, making it difficult for airlines to plan ahead.
Airbus reported solid deliveries for August, but industry sources say many aircraft are going straight into storage.
An Airbus spokesman confirmed that Faury had issued a “general business update” to staff.
“This is part of the constant dialogue between Airbus’ top management and employees, which is crucial in these challenging times in order to ensure transparency and share information with our global workforce,” the spokesman said by email.
He declined further comment.
An official with France’s CGT union accused Airbus of deliberately stoking up staff anxieties ahead of further labour negotiations starting in one week.
Airbus has so far launched an internal call for voluntary departures and early retirements, in a scheme expected to run until the end of the year.
Reporting and photo: Reuters
Maldives on Thursday welcomed the one millionth tourist to visit this year.
The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.
Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.
After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).
Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.
Maldives expects to reach 2 million tourists this year.
Chongqing Airlines on Monday began its inaugural flights to Maldives.
The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.
The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.
“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.
Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.
In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.
China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.
CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.
Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.
The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.
SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.
Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.
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