Future of Brussels Airlines staff unclear amidst new savings plan
Thursday, 07 November 2019
Management of the airline announced a new savings plan on Thursday which aims to save €160 billion each year until 2022. Credit: Wikimedia Commons.
The future of some 4,200 Brussels Airlines staff members is unclear following the announcement of a new cost-savings plan by the airline’s management on Thursday morning.
The goal of the new cost-savings plan, ‘Reboot’, is both to make the airline smaller and more profitable. It hopes to generate annual savings of €160 million until 2022, as well as a profit margin of at least 8% by 2022 for the airline, after which growth can be considered again.
In recent years, the average profit margin of the airline has been 0%, explains VRT.
The impact of the ‘Reboot’ savings plan on staff members is not yet clear. The airline will review each department over the comings months and years to determine where savings can be made.
Although management has expressed commitment to offering voluntary departure schemes for staff, redundancies are not completely off the table, according to De Standaard.
Costs incurred by the airline in 2018 amounted to just less than €1.6 billion.