Etihad temporarily cuts staff pay by up to 50% as all flights are grounded

Etihad seeks to make extreme cost savings after it is forced to ground all flights for the first time in its history

Etihad will staff salaries by between 25% and 50% during April as part of cost-cutting measures to help it weather the Covid-19 crisis, which has forced the airline to ground all flights.

Etihad Airways began a 14-day flight suspension on Tuesday following a directive from the GCAA and National Emergency Crisis and Disaster Management Authority.

UAE authorities banned all passenger flights in and out of the country in an effort to curb the spread of the virus, which has so far killed two lives in the country.

A spokesperson for Etihad confirmed to sister title Arabian Business that the airline will reduce the basic salaries of staff, including executives, for April, after which the decision will be reviewed.

Housing allowances and education assistance will continue to be paid over this period.

The said that decisions were being taken “to safeguard the future of Etihad and that of the Etihad family”.

Airlines in the Middle East are expected to lose $19 billion this year because of the pandemic, according to The International Air Transport Association.

“This is the first time in Etihad’s history that we have had to suspend all our passenger operations, and the negative impact on our business will be significant,” the spokesperson added.

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