Local airlines in deep crisis as lockdown bites

Local airlines are in deep crisis as they grapple with several problems, ranging from coronavirus pandemic, depleted funds due to the international lockdown, and looming job loss, among others.

In separate interviews, some staff of Air Peace, Arik Air, and Dana Air lamented over fears of losing their jobs, or their monthly earnings, as they have been either told not to expect full salaries, or any salary at all by the end of the ‘Black April’.

In the case of Arik Air, which was acquired by the Asset Management Corporation of Nigeria, findings revealed that the management has informed about 1,800 workers that it can only pay them half of their salaries.

A manager in the airline, who prefers anonymity said the management had told all workers across the nation that it would only pay half of the workers’ salaries for obvious reasons.

That is not all. The source also disclosed that the workers would be in for another shocker in a few weeks from now. “Being paid 50% of our salaries is not really a big deal, but the plan of the airline is to right-size the workforce. Information I got from Lagos confirmed that about 50% of the workforce may be forced to resign and that is more devastating than slashing salaries by 50% due to lockdown,” he added.

In the case of Dana Air, there are no signs of job losses, however, its 700 workers are not happy. When the management of the airline paid them half salaries in March, a lot of them were hopeful that the situation would improve by April.

But their hopes were dashed when they were informed by the same management that the airline would not be able to pay the April salaries, except the situation changed.

“We have been informed not to expect salaries in April for obvious reasons. Since, COVID-19 locked the industry, it has shut our industry and it is really affecting the workers. We have children and wives to cater for and without money, we are handicapped. We urge the Federal Government to come to the rescue of the airlines,” she said.

Reacting, Manager, Media/Communications, Dana Airlines Limited, Kingsley Ezenwa, disclosed that the airline has paid workers their March salaries, but the agitation was for the April salary.

According to him, the development is a global trend and the airline is not isolated. He added that before the lockdown, it was difficult for local airlines to survive, as most of them were barely flying 40 passengers to other cities.

“We understand what our staff are going through. If anybody is paying for April, well and well, but if anyone is not paying April, we need to understand too because it is very difficult for airlines now. We are going to do a note to all staff to educate them further on the development.”

While most of the airlines have not reportedly decided whether to pay their workers during the crisis or not, Azman Air was said to have issued a circular to all its workers to go on compulsory leave without pay.

In all, since the lockdown, no fewer than 76 planes have been parked across airports in Nigeria by the eight local carriers.

Also, over 6,000 airline workers have been rendered redundant, with a few airlines sending their workers on compulsory leave due to the suspension of their operations.