Rwanda’s national airline, Rwandair, has announced plans to slash its employees’ salaries by between 8% and 65% in the wake of the coronavirus that continues to take a toll on the aviation industry.
According to the airline’s CEO, Yvonne Makolo, the lowest-paid staff will get the 8% cut. In comparison, the highest-paid will get the 65% cut, reiterating that the decision seeks to sustain the existing workforce without layoffs.
Furthermore, certain levels of senior staff will have their pay standardized to that of a lower management level.
Other measures the airline has taken to cushion itself from the impacts of the virus include the senior management forfeiting their April salaries, an extension of the suspension of pilot employment contracts, and the indefinite suspension of non-essential contracts.
International Air Transport Association (IATA) projects that the global air industry will make revenue losses of between $63 billion and $113 billion in 2020 in the passenger sector. The association reported that airlines worldwide might need up to $200 billion in state aid to remain afloat.
The Defence Web notes that since the virus outbreak, international bookings in Africa dipped roughly 20% in March and April, with domestic bookings falling by about 15% in March and 25% in April. By 11th March 2020, airlines had lost $4.4 billion in revenue.
RwandAir Limited is the flag carrier airline of Rwanda. It operates domestic and international services to East Africa, Central Africa, West Africa, Southern Africa, Europe the Middle East and Asia, from its main base at Kigali International Airport in Kigali.
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