Gatwick introduces programme of cost-saving measures in response to COVID-19 outbreak

UK. London Gatwick Airport has introduced a raft of cost-saving measures in light of the “unprecedented impact” of the COVID-19 outbreak.

Two of the airport’s six piers will shut, while the airport will also close to flights between midnight and 05.30 from today (17 March), except for emergency landings. Gatwick said further operational action was likely to be announced in coming days.

The airport is also deferring spending on its investment programme for the foreseeable future, while the airport’s executive team will take a -20% salary cut and waive any bonus for the current financial year.

Some 200 staff on temporary fixed-term contracts and contractors will also have their employment terminated “in order to protect the business”, the airport said. Consultations with employees on further measures to reduce near-term operating costs will take place “to explore the potential to introduce options for unpaid leave or temporary salary reductions for staff”, the airport said.

The airport is also working with third-party suppliers to reduce expenditure.

Gatwick Chief Executive Officer Stewart Wingate explained that the actions were “necessary and appropriate to safeguard the financial resilience of the business – and prepare it for a quick recovery”.

He commented: “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.

“We must all play our part in helping the airport recover and both myself and our executive board will take a significant pay cut to help reduce costs. We also very much regret having to make this difficult decision to reduce our staff numbers and I would like to thank everyone for the contribution they made to the business.

“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.”

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