Gatwick airport said it is taking “decisive action” to
safeguard its financial resilience as its largest airline partners continue to
make cuts due to falling passenger demand in the face of the coronavirus
outbreak.
Easyjet, British Airways, Norwegian, Virgin Atlantic and TUI
have all made huge capacity reductions and schedule changes as travel
restrictions go into place around the world. Gatwick said this has meant
passenger numbers dropping at the airport.
Operationally, Gatwick will close to flights between
midnight and 0530 and is shutting two of its six piers due to a reduction in
passengers. It warned further action is likely to be announced in the coming
days “in response to this very serious, ongoing situation”.
The airport is also deferring spending on its investment programme
for the foreseeable future, while chief executive Stuart Wingate and the
executive team will take a 20 per cent pay cut and waive any potential bonuses
for the current financial year.
In addition, 200 staff on temporary fixed-term contracts and
other contractors will be made redundant and it is also in discussions with
employees on the potential for further options such as unpaid leave or
temporary salary reductions.
Wingate 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.
“Significantly reduced passenger numbers are likely to be
sustained, at least in the short to medium term, and I need to prepare people
for 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.”
Gatwick said it supports the Airport Operators Association’s
call for the government to provide relief for airports in the form of a
business rates holiday, deferring VAT payments and the suspension of regulatory
costs.