Airport groups move to protect finances with ‘temporary’ reductions in staff

By Charlotte Turner |

CPH Shopping Center lead image 2019Copenhagen Airports (CPH), Manchester Airports Group (MAG) and Northern Capital Gateway (NCG) are the latest operators to announce proactive measures – including a reduction in operating hours and staff at shops and restaurants – to prevent the spread of Covid-19 and to minimise economic losses during this period of uncertainty. 

 

Whilst this involves reducing the number of staff in shops and restaurants, CPH emphasises that measures are temporary and MAG says it expects demand to return once the virus has reached its peak.

 

During this period, CPH expects to make use of the wage compensation package presented by the Danish government and labour market parties, applying the package for employees who will be temporarily sent home due to the sharp drop in operations. At present, CPH says it expects to temporarily send home upwards of 1,500 employees over the coming weeks, although this will be a gradual process in step with the cutback in operations.

 

CPH has a total of 2,600 employees, while the shops at the airport, the airlines and the handling companies employ between 22,000 and 23,000 people between them.

 

While staff employed by the airport’s retail partners and F&B providers will be impacted, CPH does say that it will keep a number of shops and restaurants open during this time.

 

DENMARK’S LARGEST SHOPPING CENTRE

“CPH runs what is usually Denmark’s largest shopping centre,” said the airport. “There are 91 shops and 46 restaurants overall in our terminals. Many of these shops and restaurants will close temporarily over the next few days.

Copenhagen Airport Shopping Centre 2019

There are 91 shops and 46 restaurants at Copenhagen Airport, some of which will remain open during this period of uncertainty.

“However, CPH has agreed with a number of shop and restaurant concessionaires that a minimum of them will stay open to serve passengers at the airport over the coming period. This will mainly be in Pier C, where all arriving passengers have been going through passport control since border control was reintroduced on Saturday.”

 

CPH reveals that it will postpone some of the work to expand Terminal 3 (airside) whilst also adapting operations to the dramatic cut in aircraft operations. Passenger traffic has dropped by around 70%, and it is expected to drop further over the next few days.

 

“We’re currently attempting to manage an entirely unusual and grave crisis situation for the airport,” said Copenhagen Airport CEO Thomas Woldbye.

 

“In addition to what we can do ourselves to reduce our operations, we welcome the solution presented by the government and the labour market parties involving wage compensation for employees. It enables us to navigate the situation by taking a longer-term view and making a dedicated effort to avoid redundancies, while the crisis persists.”

Charlie Cornish CEO MAG

Charlie Cornish, Chief Executive Officer, MAG.

‘DEMAND WILL RETURN ONCE THE PEAK PASSES’

Meanwhile, Charlie Cornish, Chief Executive Officer, MAG maintains that he expects the impact of Covid-19 to be temporary and that demand will return once the disease’s ‘peak’ has passed.

 

He also has announced that in the coming days the company will be consulting with ‘colleagues and unions and introducing measures to reduce costs and preserve the Group’s resources at this critical time’.

 

“These will include enforced annual leave, reduced working hours, temporary pay cuts and temporary lay-offs.

 

“Our Executive team is taking a pay cut with immediate effect and we have frozen recruitment and paused capital expenditure. We expect demand to return as the Covid-19 peak passes, but this temporary and dramatic downturn requires us to act now to protect our position at this critical time.

 

“Over the past decades, the aviation industry has been one of this country’s success stories. We provide vital services to the economy and to regions dependent on air connectivity. Aviation is also essential to some of our most important industries and in forging trading relationships.

 

“We will continue to monitor the situation and make further announcements on MAG’s operations as the COVID-19 situation develops.”

St-Petersburg-Pulkovo-Airport-Dufry-arrivals-opening-2019-lead

Dufry and Pulkovo Airport executives opened a new duty free arrivals store at the airport under Nuance/Dufry branding in April last year.

PULKOVO EQUIPS TO PREVENT SPREAD OF DISEASE

Whilst Pulkovo St Petersburg Airport has not yet announced cost-cutting measures at this time, it is ensuring the public that it is doing everything in its power to prevent the spread of infection, including introducing disinfecting units which are purifying the air in congested passenger areas.

 

“Air recirculators are operating in lavatory rooms in the international arrivals hall,” said the airport operator. “An unscheduled inspection of the airport ventilation system has been made.”

 

Airport staff members have also been equipped with protective masks, gloves, antiseptic wipes and gels.

 

Airport operator, NCG has also said that it has limited the number of public events for the staff; switched corporate communication to electronic and telephone format; cancelled business trips to countries with an ‘unfavourable epidemiological situation’ and limited the number of international and regional business trips.

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