To cope with the financial devastation caused to airlines by the COVID-19 pandemic, Turkey’s President Recep Tayyip Erdogan has helped broker a deal between trade unions and Turkish Airlines pilots, together with additional workers, that will see wages cut for the coming year by up to 50%. The Hava-Is union represents approximately 75% of the 30,000 Turkish Airlines employees.
In the second quarter of the year the flag-carrying airline posted a US$303 million loss, with passenger numbers declining by 61%. Unlike most carriers, worldwide, Turkish Airlines has not looked to the government for a financial bailout or massive job cuts. The result of these negotiations should see monthly cash burn drop 14% from a current US$350 million according to analysts. Under the agreement, so-called “seniority payments” for all employees will be cut by 30%, while pilots will receive a 50% reduction in flight compensations. Cabin crew will see compensation cut by 35% and ground employees by 30%.Email Post to a Friend