Virgin Atlantic cuts chief’s pay to help offset hit from coronavirus

Virgin Atlantic is cutting the pay of its CE by 20% for four months as it becomes the latest airline to take emergency measures to protect profitability as the coronavirus continues to hit passenger demand. The British carrier on Wednesday said CE Shai Weiss had agreed to reduce his pay between April and July, while its executive leadership team would take a salary cut of 15%. Virgin Atlantic’s move comes as airlines around the world are freezing recruitment and slashing the number of flights in the wake of the spreading virus. The IATA will on Thursday significantly increase its estimate of the hit to global sales from the virus. Just 13 days ago it estimated a near-$30b impact, but this was based largely on the impact in Asia. Virgin Atlantic suffered a 40% drop in customer demand compared with March 2019, a sign that the virus is hitting demand for long-haul flights, not just short-haul flights in Europe. Virgin Atlantic says it will delay the start of its London Heathrow to São Paulo service, which was due to start on March 29, until the winter season with services beginning from October 5. The carrier has already suspended its London Heathrow to Shanghai service until April 19 and reduced the frequency of its Hong Kong route. The airline is also freezing recruitment and offering ground-based employees unpaid leave of between one to two weeks to be taken before July 31. It has further proposed to defer annual increases from March until August, when it will reassess affordability.<br/>