Icelandair Group shifts nearly all staff to temporary working

Icelandair Group has disclosed that it is operating only 14% of its flight schedule and expects this to reduce further, and that it is taking steps to move 92% of employees to temporary part-time working. But it is also cutting 240 personnel across its divisions. The group employs just over 4,700 staff. Salaries of remaining employees will be reduced by 20%. Icelandair Group’s CE, Bogi Nils Bogason, and its board members will take 30% salary cuts while other executive management salaries will be reduced by 25%. Switching to temporary working will limit lay-offs, it says, and assist short-term cash-flow. While it has implemented measures to reduce expenditure, through supplier and financing negotiations, the company says salaries are its single-largest cost item. <br/>