RwandAir to slash employees’ salaries due to COVID-19

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RwandAir said Sunday it had decided to reduce employees’ salaries to protect the company’s future well-being amid the COVID-19 pandemic.

Like all other airlines worldwide, RwandAir has been greatly impacted by the COVID-1p pandemic, the airline said in a statement.

“In order to protect the company’s future well-being and to avoid laying off staff, RwandAir has had to implement several temporary measures to reduce expenditure, including the reduction in employees’ salaries,” it said.

An internal memo that leaked earlier on Sunday indicated that RwandAir will cut the salaries of its lowest paid employees by 8% and by 65% for its top earners.

RwandAir flies to 29 destinations across the world.

The statement said the difficult decision was reached after evaluating the stark option available in the context of severely affected aviation sector worldwide.

The management and Board of RwandAir will continue to do what is possible to mitigate the effects of the pandemic and ensure the continued growth of the company once operations resume, it added.

The East African Business Council recent report on the impact of COVID-19 on financial sector, said RwandAir would record 79,000 loss in passenger volumes and $20.4 million loss in base revenues in Rwanda in the short term due to coronavirus.

It warned the disruption to travel could also put at risk about 3000 jobs in the country.

Kenya Airways would record 2.5 million fewer passengers resulting in $0.54 billion revenue loss, according to the report.

The coronavirus would also put at risk 137,965 jobs and $1.1 billion contribution to Kenyan economy.

Globally, the International Air Transport Association (IATA) has estimated that emergence aid of up $200 billion is needed.

The Ministry of Health on Saturday reported that COVID-19 cases in the country had reached 183 and the number of recoveries had risen to 88. 

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