Nigerian airline, Arik Air, on Thursday last week, said at least 90 percent of its workers will proceed on indefinite leave without pay from May 1. 2020.The airline’s Chief Executive Officer, Roy Ilegbodu, in an internal memo said the company took the decision as the outbreak of coronavirus pandemic has caused the airline an unimaginable financial strait.
“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,” Ilegbodu said in a message sent to the staff of the company.”
“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.”
Ilegbodu said in order to safeguard the survival of organization, the management after careful deliberation and analyses the company’s staff will get 80% pay cut: for April and 90% of staff will proceed on leave without pay until further notice.
The coronavirus which started in Wuhan, China late December has forced many companies to cut down operations and even shut down temporarily while many might eventually shut down completely.
As the pandemic has brought much of the world economy to a halt, it has also collapsed of oil prices and countries, like Nigeria, which largely depends on oil may be in for a turbulent ahead.
