Qatar Airways planning substantial job cuts: Company notice

Qatar Airways is planning to cut a significant number of jobs because travel has been disrupted by the coronavirus pandemic, and told cabin crew to prepare for redundancies, a company notice seen by Reuters said on Tuesday. (Reuters/File Photo)
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Updated 05 May 2020

Qatar Airways planning substantial job cuts: Company notice

  • Airline said in March it was burning through its cash reserves and would eventually seek government aid

DUBAI: Qatar Airways is planning to cut a significant number of jobs because travel has been disrupted by the coronavirus pandemic, and told cabin crew to prepare for redundancies, according to a company notice seen by Reuters.
The state-owned airline, one of few global carriers still operating scheduled services, said in March it was burning through its cash reserves and would eventually seek government aid.
“We have to face a new reality, where many borders are closed, rendering many of our destinations closed and aircraft grounded as a result, with no foreseeable outlook for immediate, positive change,” Chief Executive Akbar Al-Baker said in the notice to cabin crew.
“The truth is, we simply cannot sustain the current numbers and we need to make a substantial number of jobs redundant — inclusive of Cabin Crew.”
A Qatar Airways spokesman confirmed a number of roles were being made redundant due to the impact of COVID-19.
“The unparalleled impact on our industry has caused significant challenges for all airlines and we must act decisively to protect the future of our business,” the spokesman told Reuters.
Neither the notice or the spokesman said how many jobs would be cut.
A Qatar Airways spokesman had no immediate comment when contacted by Reuters outside of normal business hours on Tuesday.
Affected employees would be paid their contractual dues and any owed overtime, the notice said, and those who are not able to immediately return to their home countries would be provided with housing and a living allowance until such a return was possible.
The airline said last month some staff would have their wages halved for at least three months though would be later paid back.
Qatar Airways Group, which counts the airline among its assets, had 46,684 employees at the end of its last reported financial year in March 2019.
Rivals Emirates and Etihad Airways have temporarily slashed wages as they try to weather the crisis, while budget carrier Air Arabia earlier on Tuesday said it had laid off 57 employees.


German economy rebounding, faces risk from virus resurgence

Updated 24 September 2020

German economy rebounding, faces risk from virus resurgence

  • The Ifo institute’s index released Thursday rose to 93.4 points in September from 92.5 points in August
FRANKFURT: A widely watched indicator of German business confidence has risen for a fifth month in a row as Europe’s largest economy rebounds from the coronavirus shutdowns — but the index remains below its long term average and uncertainty is high with virus cases rising.
The Ifo institute’s index released Thursday rose to 93.4 points in September from 92.5 points in August. The index is based on a survey of thousands of businesses about their view of current conditions and expectations for the future.
In this case the current assessment rose while the expectations part levelled off.
After shrinking 9.7 percent in the second quarter, the worst quarterly figure on record, the economy is rebounding from the severe shutdowns and restrictions on activity and movement of March, April and May.
Carsten Brzeski, chief eurozone economist at ING bank, said growth could rebound sharply with growth between 5 percent and 10 percent in the third quarter. But the recovery still faces hurdles and has a long way to go to regain its pre-pandemic footing.
“Given the recent softening of leading indicators, however, there is a risk of a double-dip in the fourth quarter,” Brzeski wrote in a research note, “unless social distancing rules are eased further; a very unlikely scenario given the latest increase in new COVID-19 cases.”