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RwandAir cuts staff salaries

NEWS
By Fredrick Obura | April 27th 2020

RwandAir has joined a growing list in the aviation industry to announce far reaching measures to sustain business during the coronavirus period.

In a memo seen by Standard Digital, the Kigali based airline said it will cut employees salaries by between 8 to 65 per cent depending on job scale in a measure to ensure business sustainability.

Some of the measures taken by the company include forfeiture of net salary by Chief Executive Officer, his deputy and all directors for the month of April. It will also suspend pilot employment contracts and non-essential contracts until further notice.

Also affected include communication allowances and it will also re negotiate terms to reduce expenditure and financial commitments.

“The above measures have been necessary, however they are not enough,” said Yvonne Makolo, Chief Executive Officer.

“We have also aligned outstation staff salaries to the local payroll; county managers to be paid as senior managers, station managers as managers and station officers as duty managers.”

The carrier, which flies a fleet of 12 Boeing and Airbus planes to 29 destinations across three continents, has been one of the rising stars in Africa.

In February, Qatar Airways said it was in talks to buy a 49 per cent stake in the airline.

“We considered several other alternatives and the choice we made is the best option at this time,” RwandAir’s management wrote in the memo, which two employees told Reuters they have received.

The management of the young airline, which is owned by the government and has not yet made a profit, could not be reached immediately for comment

Airlines around the world have been forced to ground their planes after governments imposed travel restrictions and closed borders to slow the spread of the COVID-19 pandemic.

Air Mauritius said this week that it has entered voluntary administration due to the crisis, joining Virgin Australia and South Africa Airways who have called in administrators.

Kenya Airways (KQ) Chief Executive Allan Kilavuka has taken a 35 per cent pay cut as the coronavirus pandemic continues to hit the national carrier’s bottom-line.

In what is aimed at helping the cash-strapped airline stay afloat, the airline’s board members also agreed to forego their monthly fees and sitting allowances following a global pandemic that has seen the national carrier suspend its flights to a number of countries.

Mr Kilavuka, who was confirmed to the position on February 27, agreed in March to forfeit a third of his salary as KQ struggles to fly through the headwinds that have been thrown its way by the coronavirus.

Covid 19 Time Series

 

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