*As 90% staff to proceed on leave without pay until further notice
Arik Air on Friday said the airline will implement 80 per cent pay cut for all members of staff for the month of April 2020, stressing that from May 1st 2020, 90 per cent staff will proceed on leave without pay until further notice.
The Managing Director of Arik Air, Captain Roy Ilegbodu, while disclosing this on Friday, stated that the review becomes necessary because of the sharp decline of 98 per cent of the airline’s revenue stream, decline in naira value as well as current oil prices.
He also stated that the position will be reviewed on a monthly basis and communications on further developments will be shared as the situation evolves.
According to Ilegbodu,” To date, the situation created by the COVID-19 pandemic remains dire with a high level of uncertainty, even within medical circles regarding the containment of the pandemic.
“Although daily updates from a few countries seem to be encouraging, our situation in Nigeria appears to be getting worse. With the current observed trend of events, it is prudent to lean on the assumption that the situation is likely to persist for a while longer.
“Of huge significance to us is that we have suffered a sharp decline of over 98% in our revenue streams since the suspension of our scheduled flights almost four weeks ago.
“Added to this is the rapid decline in the value of the Naira by over 35% against the benchmark and with oil prices now falling well below $15 per barrel, it is evident that we must, without further delay, take decisive action to preserve our organization.
“The management’s focus has always been on the well-being and safety of our staff, managing the airline’s liquidity as an organization and creating the opportunity to ride out of inclement circumstances such as the one we are faced with today”.
“After careful deliberation and analyses, management has decided to implement an 80% pay cut for all members of staff across the entire organization for the month of April 2020.
“Furthermore, commencing from May 1st 2020, no less than 90% of our staff will proceed on leave without pay until further notice. This position will be reviewed on a monthly basis and communications on further developments will be shared by our HR department as the situation evolves.”