Virgin defers annual staff wage rise and cuts top execs’ pay

Virgin Atlantic has deferred its annual pay rise for staff, while its top execs are to take pay cuts of up to 20% over the next few months.

The airline has implemented the measures in response to the worldwide coronavirus outbreak, which has slowed air travel demand.

Virgin also said its Heathrow-Sao Paulo service, due to commence on March 29, will be deferred until the winter season, with services now beginning on October 5.

The carrier said it will ‘continue to review our flying programme and additional changes will be made as the situation evolves’.

CEO Shai Weiss will take a 20% pay cut for the four months April-July inclusive, with the Executive Leadership Team agreeing a decrease of 15%.

Virgin is also proposing deferral of annual pay increases from March until August 2020, when it will ‘reassess affordability, based on what we know of the impact of Covid-19 at that point’.

A company-wide recruitment freeze, restriction on all non-essential staff travel and training (not including all safety and compliance training) and an option of unpaid leave for ground-based employees of between one and two weeks, to be taken before 31 July, are among other measures the airline has announced.

Virgin said: "The Covid-19 situation is dynamic and fast-moving, and we continue to monitor it very closely, with the health and safety of our customers and people remaining our absolute priority.

"All our actions are guided by the World Health Organization (WHO), Public Health England and the Foreign and Commonwealth Office (FCO) and by the latest advice provided by these experts.

"As with airlines around the world, Virgin Atlantic is feeling the impact of Covid-19 and seeing a fall in customer demand for travel. We are taking appropriate measures and focusing efforts on ensuring that the airline is in a robust position to weather the storm, minimising the impact of the virus on Virgin Atlantic and Virgin Holidays.

"We previously suspended our London Heathrow-Shanghai service until April 19 2020 and have reduced the frequency of our Hong Kong service. 

"These measures will ensure that the airline is in a strong position for the coming months, with a recovery expected in the second half of the year."

It added: "Virgin Atlantic has faced previous adversity and challenges over the years and through these sensible steps we will ensure that we are in a stronger position once the impact of Covid-19 stabilises."

Earlier today, Virgin introduced a policy to waive the flight date change fee for tickets issued in March.