'Hammer blow' as Luton Airport proposes to cut 250 jobs

The airport says it has been compelled to take action due to the "unprecedented impact of coronavirus on the demand for air travel".

By the end of this year, it is anticipated that passenger traffic at the airport will be down 70% compared to 2019.

The consultation period with staff and trade unions began yesterday (Wednesday) over cuts to 250 roles in the business, representing 29% of the workforce.

CEO Alberto Martin said: "This is an extremely challenging period, made all the more difficult given the value we place in our airport family who have had a role to play in the airport’s success.

"During the consultation we will be working to support our colleagues as much as possible and will be seeking ways to avoid redundancies where possible such as exploring opportunities for alternative employment elsewhere in the business."

Unite - the UK’s main aviation union - has described the announcement as a "hammer blow" for the crisis-hit sector.

It is expected the redundancies will affect security guards in particular, with cuts to office based staff and other core roles at the airport.

Unite regional officer Jeff Hodge said: “With the government looking at air bridges and the job retention scheme (JRS) continuing until October, this decision is simply premature. Any decision on job losses can and should be delayed until a clearer picture is available.

“But we are also calling on the government to play its part. Job losses in the aviation sector are growing directly as a result of the government’s failure to provide a sector-specific support package for the industry.

"The government first promised support way back in March, so why are the industry and workers still waiting?

“Aviation will return to good health but it will take time, which is why JRS should be extended and specific support should be provided to preserve the employment of airport and airline staff.

“The reality is that without urgent and decisive action from the government, more aviation jobs will go.”

Unite is also dealing with smaller-scale redundancies among several of the contractors operating at Luton Airport.

Over 27,000 local jobs are sustained through the airport, including 9,400 direct jobs and 7,700 indirect jobs.

Mr Martin added: "Though we remain confident the airport will recover it is difficult to predict the full effect of this pandemic.

"Forecasts suggest that aviation will not recover to 2019 levels until 2023 or 2024, and in the short-term passenger numbers will be much lower than pre-pandemic levels."