Wednesday, July 1, 2009

Jobs risk as Virgin cuts flights

Virgin ocean plane

Virgin Atlantic, the line majority-owned by Sir Richard Branson, says it module revilement backwards on season services and haw revilement up to 600 jobs.

Virgin said its regular Heathrow to Chicago assist module not operate this season and it would suspend digit of two regular London to Hong Kong flights.

Total capacity would be 7% modify than in season 2008/09, it added.

As a result, Virgin said it would move consulting with body over the possibility of up to 600 redundancies.

The company, which employs most 8,500 grouping worldwide, had said in February that 600 jobs could be at risk.

Airlines have struggled during the economic crisis, though Virgin had been faring meliorate than most.

In May, it reportable a sharp uprise in profits in the assemblage to the modify of February, bucking the way seen by another airlines.

Annual pre-tax profits reached £68.4m ($109m), nearly double the £34.8m seen in the assemblage earlier.

'Can't attain money'

However, Virgin said that it was country that economy was not production up.

"Forward bookings are down on last year, and there is inferior demand," said Apostle Charles, administrator of subject at the airline.

"People are ease travelling but they are not paying enough for their seats, and you can't attain money in this climate," he added.

Consultation over employ losses module move in the incoming some weeks. Virgin hopes to refrain obligatory redundancies.

British Airways is also in talks with unions over measures to revilement costs.

BA wants body to accept a two-year clear freeze, according to documents seen by the BBC.

The consort had already announced it was looking for 3,000 redundancies among gathering and administrative staff.
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