World Airlines Contemplate Layoffs, Vegas Shutting Some Resorts
Impacting Travel March 14, 2020
The COVID-19 crisis shows no signs of dissipating in Europe and North America.
With air routes cancelled all over the world and governments suggesting folks stay home, airlines in Canada and across the globe have either laid off employees or are considering some kind of temporary reduction in their work force.
In addition, both MGM Resorts International and Wynn Resorts will temporarily close massive properties in Las Vegas.
Wynn Resorts on Sunday said it would close Wynn Las Vegas and Encore on Tuesday, March 17 "as part of its continuing effort to reduce the spread of COVID-19 (coronavirus)," CNN reports.
The company said it expects the closures to be in effect for two weeks, beginning at 6 p.m. Tuesday, at which point the company will assess the situation.
MGM Resorts said on Sunday that it will close casino operations on Monday, March 16, and then hotel operations. The company's website says they're taking reservations for arrivals beginning Thursday, April 2.
MGM Resorts operates a number of Las Vegas properties, including the Bellagio, the MGM Grand, Aria, Mandalay Bay, New York-New York, and The Mirage.
The governor of Illinois on Sunday ordered bars and restaurants in the state to close from today (March 16) to March 30. Speaking on CNN on Sunday, Los Angeles Mayor Eric Garcetti said he plans to enact a similar policy.
Airlines also are scrambling. Reports say Norwegian Air is laying off half its staff due to flight cancellations amid the COVID-19 virus, and Canadian airlines may be forced to look at similar moves.
The Globe and Mail on the weekend said WestJet is set to cut its international seat capacity by 60% and reduce domestic flights by at least 40% amid government actions to limit travel to contain the COVID-19 pandemic.
The CBC is reporting that the union representing WestJet flight attendants “is expecting layoffs of more than 50% of its staff as the number of flight cancellations and restrictions continues to mount” amid the COVID-19 outbreak.
According to the CBC story, an internal WestJet memo sent to union officials and obtained by The Canadian Press says that travellers are rebooking en masse and "our airline's well-being has become grave overnight."
In a note to TravelPulse Canada, WestJet Executive Vice President People and Culture Mark Porter said all avenues are being explored as the company deals with a huge dropoff in sales.
"The numbers being reported (for layoffs) were communicated as one of several scenarios amongst many that are being contemplated,” he said. “The current situation is unprecedented and has escalated rapidly in the past week. We are working closely and prudently with our union and employee association leaders as well as WestJetters. We are reviewing several options to reduce costs including reduction in contractors, a pause on many of our capital projects and asking vendors for pricing cuts.
“Unfortunately, we also have no alternative but to reduce the number of employees. Our first and most preferred option is to ask WestJetters to consider voluntary leaves, unpaid vacation, reduced work time among other voluntary measures. We continue to communicate openly and frequently with WestJetters, our labour groups, federal and provincial governments around the severity of the situation and appreciate the seriousness with which it is being taken.”
Air Canada spokesman Peter Fitzpatrick told TravelPulse Canada that Air Canada has put itself in a flexible position over the past 10 years and that the company views layoffs as a last resort.
"We have told our employees that like everyone else in the world, we simply do not know where the unprecedented volatility from COVID-19 will end. However, our financial position and culture of adaptability built over the last decade position us much better than most carriers in the industry. While there can be no guarantees in such circumstances, we would view layoffs as a last resort," he said.
In an email sent Saturday morning to TravelPulse Canada, Transat said it's not contemplating permanent layoffs but that temporary staff reductions are under consideration.
"We are considering every option to avoid temporary layoffs, but we can certainly not rule them out," said Christophe Hennebelle, Vice President Human Resources and Corporate Affairs. "We have put in place cost reduction measures, launched a voluntary working-time reduction program and reached out to all levels of government for support."
"As you can understand, the situation is very fluid and evolves on an hourly basis, so it might be that we decide at some point to resort to temporary layoffs and salary cuts for upper management.
"Permanent layoffs are not considered for now," Hennebelle said.
Chris Rauenbusch, president of CUPE 4070 — which represents cabin crews at Calgary-based WestJet and its budget subsidiary Swoop — told the CBC that daily conversations with senior management alerted him to the increasingly "severe" situation.
"Basically, all new bookings are drying up," he said. "It's literally changing by the hour."
A top official with British Airways was quoted this weekend as saying that jobs would be lost "perhaps for a short period, perhaps longer term."
Canadian Prime Minister Justin Trudeau on Friday asked Canadians to avoid non-essential travel outside the country so Canada can help contain the COVID-19 virus. U.S. President Donald Trump has temporarily stopped all flights to the United States for visitors who’ve been in more than two dozen European countries in the past two weeks. That affects thousands of potential flights, each with hundreds of would-be visitors.
Major sports leagues around the world have cancelled or postponed tournaments and games, and some of the world’s top attractions have temporarily closed or will soon close their doors, including Disney World in Orlando and the CN Tower in Toronto.
Cruise lines also have temporarily cancelled many of their trips, which means less airline passengers flying to Europe, Florida and other popular cruise ports.
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