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  • Business - Companies
  • Updated: August 04, 2020

Ticket Price Hike: How Sack Of 70 Pilots Will Affect Air Peace, Passengers

Ticket Price Hike: How Sack Of 70 Pilots Will Affect Air Pea

Air Peace has reacted to report that it sacked almost all its pilot in a day following disagreement over salary structure. The pilot had turned down salary cut of about 40% offered by the management of Air Peace, and in response, the company initiated mass sacking.

The airline sacked between 70 to 75 pilots after the workers protested the salary cut in July. The dispute over salary had risen after Air Peace initiated cost cutting strategy to remain operational amidst the economic downturn caused by the COVID-19 pandemic which forced the Aviation industry to shutdown for about four months.

The industry was said to have lost about N20 billion for each month it remained lockdown. AllNews had reported that President Muhammadu Buhari adopted lockdown and restricted movement across airspace, road and even sea, allowing only essential services to operate within the lockdown period.

This COVID-19 measure affected the revenue of airline companies, and globally, the companies have been downsizing and slashing salary. That led to Air Peace to cut down its salary as well.

Air Peace Defends Mass Sacking

Speaking on the mass sacking, Air Peace, said, “The Management of Air Peace wishes to state that it has taken a very painful but rightful decision, in the circumstances the airline has found itself as a result of the devastating effects of the COVID-19 pandemic on its operations and financial health, to terminate the employment of some of its pilots.

“This decision was taken for the greater good of the company and its almost 3000 workforce, the affected pilots inclusive. The airline cannot afford to toe the path of being unable to continue to fulfill its financial obligations to its staff, external vendors, aviation agencies, maintenance organisations, insurance companies, banks and other creditors, hence the decision to restructure its entire operations with a view to surviving the times.

“The pandemic has hit every airline worldwide so badly that it has become very impossible for airlines to remain afloat without carrying out internal restructuring of their costs. Anything short of what we have done may lead to the collapse of an airline as could be seen in some places worldwide during this period.

“Therefore, we decided to review the salaries being paid to all staff. The new salaries reflect a 0%-40% cut of the former salary depending on the salary grades of every staff. Even after the cuts, it was obvious that for us to be able to sustain our operations and survive the times, some jobs must inevitably have to go.”

Note that when Air Peace resumed, the company increased its flight fare after the lockdown. This is despite not observing social distancing on the plane by leaving the middle seat empty. Charging passengers more and deciding to cut salary might have prompted the pilots to reject the pay cut, as the company's revenue after reopening will shoot up due to the rise in flight cost.

How Will This Affect Air Peace, Passengers

The mass sacking might affect the availability of Air Peace for passengers in need of their flight. Arrival and takeoff time might be affected as well, as there will be limited pilots to fly the fleets across Nigeria. The sack comes at a period the aviation industry just reopened.

If air passengers experience disappointment in their takeoff or arrival time, the passengers might move to Air Peace rivals. This will further affect Air Peace's dwindling revenue, and could lead to more sack.

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