Following the suspension of flights occasioned by the COVID-19 pandemic, the management of Arik Air, one of the major airlines in the country has announced it will slash staff pay by 80% starting from April.
From May 1, 90% of staff will proceed on leave without pay until further notice.
In a message circulated to statt, the company’s managing director Roy Ilegbodu, said the decision was the result of a sharp decline of the airline’s revenue by 98% in addition to the decline in naira value.
Daily Trust reports that the Aviation industry in Nigeria especially the airline sub-sector has been badly hit by the effect of COVID-19 which forced all airlines to suspend flights almost a month ago.
The Airline Operators of Nigeria (AON) representing the indigenous carriers had cried out to the government demanding for urgent intervention.
The AON said indigenous operators had lost N360bn since the suspension started.
Workers of Arik Air however expressed shock over the decision considering that the airline is now under the purview of the Federal Government-owned Assets Management Corporation of Nigeria (AMCON).
AMCON took over the management of the airline from the original owners in February 2017 and since then the airline has been under receivership.
Announcing the decision of the management, Arik Air MD appointed by AMCON said, “While we are not unaware of the challenges that each and every one of us may face during this difficult period, we join you in remaining hopeful that this ugly situation will abate in the shortest possible time and our organization will come out stronger in the long run. We are confident that the steps we are taking now are in the best interest of all and will see us through this difficult epoch in the history of mankind.”