Amid the ongoing Covid-19 pandemic, the UK’s London Gatwick Airport has announced its plans to implement different measures, including job cuts, to ‘safeguard the financial resilience of the business’.
In a bid to reduce its costs, the airport has started shutting down between 12am and 5:30am, effective as of 17 March. London Gatwick will only accept flights in cases of emergency landings.
Due to reduced passenger numbers, the airport has also closed two of its six piers.
Gatwick Airport CEO Stewart Wingate said: “Gatwick is a resilient business, but the world has changed dramatically in recent weeks and we have been forced to take rapid, decisive action to ensure that the airport is in a strong position to recover from a significant fall in passenger numbers.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The airport added that it would adopt further measures shortly to decrease its operational footprint.
Gatwick has planned to layoff 200 employees on temporary fixed-term contracts and contractors.
The airport has also planned to suspend the investment programme spending. The executive team, including Wingate, are planning to take 20% cuts in their salaries.
In addition, the bonus planned for the existing financial year will also be waived.
Gatwick Airport is in talks with its employees regarding the decrease of operational costs during the Covid-19 pandemic, including the possibility of temporary salary reductions and unpaid leave.
Wingate added: “Significantly reduced passenger numbers are likely to be sustained, at least in the short to medium term, and I need to prepare people for the news that other serious measures are likely.
“We also strongly urge the government to provide support in order to protect the business and the contribution it makes to the region and wider economy.”
Earlier this week, Manchester Airport Holdings (MAG) also announced different measures, including temporary layoffs, to decrease costs and preserve resources.