Lufthansa subsidiary Swiss International is taking half its fleet out of service and reducing working hours for flight personnel to help safeguard its finances during the coronavirus outbreak, it said.
"To compensate for the sharp fall in demand and resultant lost revenue, Swiss has decided to take immediate further precautionary action to secure liquidity," it said in a statement on Friday.
Payout of variable salary components would be postponed to the end of this year for both flying personnel and senior management, the airline said, adding all recruitment besides apprentices and interns would also be halted and all non-essential projects halted or postponed.
Major US and European airlines have begun discussions with governments on obtaining financial assistance to weather a crippling travel slump brought on by the coronavirus, which has hobbled global travel and is threatening thousands of industry jobs.
Swiss International's parent group Lufthansa on Friday said it would scrap its annual dividend, slash its flight schedule further and was also considering a request for state aid to help it deal with the impact of the virus outbreak.
Swiss said it was in contact with authorities and would initially apply for short-time working hours for cockpit and cabin staff, and was also considering such measures for workers on the ground.
Meanwhile, a French finance ministry official on Saturday denied that a bailout of Air France-KLKM was being considered.
The official was responding to a report in Les Echos newspaper saying the French government was considering injecting capital into the airline as it grapples with the consequences of the coronavirus.
The three largest airlines in the US — Delta Air Lines, American Air Lines and United Airlines — are in talks with the government about potential assistance amid a dramatic drop-off in air travel demand and the newly-imposed ban on flights to the US from 26 European countries.
"We will be helping the airline industry if we have to," US President Donald Trump said on Friday. "So far people haven't been asking but if they should be asking we want to make sure our airlines are very strong."
Delta chief executive Ed Bastian also told employees on Friday that it was pursuing government aid.
"We are in discussions with the White House and Congress regarding the support they can provide to help us through this period," Mr Bastian said in a memo released by the airline, adding he was forgoing his salary this year. "The speed of the demand fall-off is unlike anything we've seen."
Delta, United and American have all raised capital in recent weeks, with United tapping $2 billion (Dh7.3bn). Their share prices have fallen by between 40 per cent to 56 per cent over the past month.
UAE currency: the story behind the money in your pockets
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
