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AirBaltic plans mass layoffs of pilots and flight attendants The Latvian state airline airBaltic has announced that it intends to lay off almost 100 pilots and 200 flight attendants. The information was released by the Latvian Aviation Authority (LAA) to the LETA agency. From Saturday, 31 October, employees will receive notification of whether their positions will be retained. All flight‑attendant positions are slated for termination at the Riga base. The figure does not include staff who have already left voluntarily after the start of the collective layoff process. Unions question assessment criteria According to LAA, airBaltic is using internal pilot and flight‑attendant assessment lists and a methodology that has not been agreed with the unions. On 27 October the airline informed pilots that, because the fleet will be reduced to 36 aircraft, only about four of five pilots will keep their jobs. Flight attendants were told that only about three of four would be retained. The lists are to be finalized on 28 October. LAA notes that the airline told employees that the criteria were set after discussions with the unions. However, the unions say that some of the initially offered criteria were excluded, and no consultation took place regarding the final criteria, their weighting or application. LAA chair Dace Kavasa called on the airline not to use criteria that contain subjective elements and to agree on layoff terms with employee representatives before implementation. Pilot and flight‑attendant assessment details The assessment of captains and other pilots is conducted separately, which could place a newly promoted captain at the end of the list and result in dismissal, with no possibility of returning to another pilot role. Flight attendants are assessed separately by base and position. No reduction is planned at the Tallinn and Vilnius bases, but all flight‑attendant positions are to be terminated at the Riga base. Employees facing dismissal will be offered either a settlement agreement—giving them priority in future interviews if the airline re‑hires—or a termination notice. Those who receive a termination notice will not be offered re‑employment. Consultations and legal framework Collective layoff consultations began on 3 September, and the airline submitted a notice to Latvian and Estonian labour authorities on 29 September. LAA says that consultations on pilots and flight attendants were halted on 14 October, with individual talks scheduled to start on 31 October. The Latvian labour authority (NVA) rejected an earlier request to extend the layoff period from 30 to 60 days. Under labour law, the airline can begin collective layoffs no earlier than 30 days after the notice, i.e., from 29 October. AirBaltic has indicated that the business‑plan changes could affect 500–700 jobs—about 20 % of its roughly 3,000 employees in Riga, Vilnius and Tallinn. The exact number of positions to be cut has not yet been finalized. Chapter 11 proceedings and financing On 19 October the U.S. Southern District Court in New York confirmed the final DIP financing structure of up to €350 million, with the court signing the final order on 20 October. The financing mechanism consists of a first tranche of €175 million, a second tranche of up to €125 million and a third tranche of up to €50 million Article source: Postimees | Image credit: Postimees
AirBaltic plans mass layoffs of pilots and flight attendants The Latvian state airline airBaltic has announced that it intends to lay off almost 100 pilots and 200 flight attendants. The information was released by the Latvian Aviation Authority (LAA) to the LETA agency. From Saturday, 31 October, employees will receive notification of whether their positions will be retained. All flight‑attendant positions are slated for termination at the Riga base. The figure does not include staff who have already left voluntarily after the start of the collective layoff process. Unions question assessment criteria According to LAA, airBaltic is using internal pilot and flight‑attendant assessment lists and a methodology that has not been agreed with the unions. On 27 October the airline informed pilots that, because the fleet will be reduced to 36 aircraft, only about four of five pilots will keep their jobs. Flight attendants were told that only about three of four would be retained. The lists are to be finalized on 28 October. LAA notes that the airline told employees that the criteria were set after discussions with the unions. However, the unions say that some of the initially offered criteria were excluded, and no consultation took place regarding the final criteria, their weighting or application. LAA chair Dace Kavasa called on the airline not to use criteria that contain subjective elements and to agree on layoff terms with employee representatives before implementation. Pilot and flight‑attendant assessment details The assessment of captains and other pilots is conducted separately, which could place a newly promoted captain at the end of the list and result in dismissal, with no possibility of returning to another pilot role. Flight attendants are assessed separately by base and position. No reduction is planned at the Tallinn and Vilnius bases, but all flight‑attendant positions are to be terminated at the Riga base. Employees facing dismissal will be offered either a settlement agreement—giving them priority in future interviews if the airline re‑hires—or a termination notice. Those who receive a termination notice will not be offered re‑employment. Consultations and legal framework Collective layoff consultations began on 3 September, and the airline submitted a notice to Latvian and Estonian labour authorities on 29 September. LAA says that consultations on pilots and flight attendants were halted on 14 October, with individual talks scheduled to start on 31 October. The Latvian labour authority (NVA) rejected an earlier request to extend the layoff period from 30 to 60 days. Under labour law, the airline can begin collective layoffs no earlier than 30 days after the notice, i.e., from 29 October. AirBaltic has indicated that the business‑plan changes could affect 500–700 jobs—about 20 % of its roughly 3,000 employees in Riga, Vilnius and Tallinn. The exact number of positions to be cut has not yet been finalized. Chapter 11 proceedings and financing On 19 October the U.S. Southern District Court in New York confirmed the final DIP financing structure of up to €350 million, with the court signing the final order on 20 October. The financing mechanism consists of a first tranche of €175 million, a second tranche of up to €125 million and a third tranche of up to €50 million
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