UK News 18-09-2001 1200 Virgin Jobs To Go As Airlines Suffer who: Richard Branson what: Announces 1200 Virgin job cuts as trans-atlantic traffic slumps where: UK when: Yesterday snippet: "In expectation of a huge drop in ticket sales Virgin cut 1,200 jobs yesterday, one in eight of its total staff," reports this morning`s Times, "and grounded five of its biggest aircraft." Virgin have said that more redundancies were inevitable, while British Airways announced a recruitment freeze amid fears that the firm could axe as many as 6,000 jobs as airlines expect international flights to diminish by one fifth. After emphasising his company`s intention to redploy as many staff as possible in other areas of Virgin`s business, Sir Richard said: "We have enough cash to see Virgin Atlantic through the winter months and hopefully come out stronger than before. We had a similar situation during the Gulf War. It is important to move quickly to make sure we are still here in 20 or 30 years." "Union leaders called on the Government to give the beleaguered industry financial aid", says the Express, "to stave off the threat of mass redundancies, and some urged the Bank of England to cut interest rates." Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said ministers should consider granting loans to airlines, adding: "It is crucial that financial institutions and airlines hold their nerve and take a long term view." Meanwhile major US airlines have lost around $1bn in the past week according to the BBC, "as a result of reduced demand from fearful travellers and the cost of a two-day shutdown following the attacks." [... more]

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