COVID-19: Arik cuts salaries by 80%, places 90% of staff on leave without pay

As the airline industry across the world continues to take a beating following the suspension of most local and international flights, Nigeria’s largest commercial airline, Arik Air, on Thursday informed staff it would cut the salaries of its employees by a whopping 80 per cent.

In an internal memo obtained by Premium Times the airline’s Chief Executive Officer, Roy Ilegbodu, informed employees that the management of the company has also decided that at least 90 per cent of its workers will proceed on indefinite leave without pay from May 1. 2020.

When reached for comment, spokesperson of airline, Ola Banji, succinctly confirmed the decision but declined to give further details.

“All I can tell you now is that yes, it is true,” he said.

In the memo seen by Premium Times, Mr Ilegbodu lamented that the outbreak of the pandemic has placed the company in an unimaginable financial strait that is unlikely to ease anytime soon.

He said the company revenue stream has plunged by 98 per cent and the financial downturn has been made worse by the drop in the value of the naira and the dip in the price of oil.