Big Four axe jobs and move to restructure

Big Four axe jobs and move to restructure

Fallout: the Big Four are feeling the effects of the September 11 terrorist attacks

Report by JULIET DENNIS

THE vertically integrated operators have admitted defeat and revealed they will be slashing 1,500 jobs just a month after the terrorist attacks in the US.

First Choice expects to shed 1,100 jobs – 10% of its workforce – from November and Airtours UKLG is making 100 people redundant in its retail network and tour operating businesses.

Thomson is to make 300 job cuts at its airline, Britannia Airways, during next year. It claims the losses are unrelated to the September 11 crisis.

The cuts follow Thomas Cook’s announcement it is to axe 430 staff. First Choice has already made some senior managers redundant.

First Choice said the redundancies are part of a restructure “in light of the new, challenging and uncertain environment”, and more than half will be in the UK business.

The cuts are expected to save the company £20 million a year and will be spread across the business. The US crisis will cost the operator £10 million by October 31.

The company’s UK and Ireland division has slashed capacity for November 2001 to January 2002 by 15%. It has reduced capacity by 20% for summer 2002 and is cutting its fleet from 32 to 26 aircraft.

Finance director Andy Martin said: “We don’t want to be left running half-empty aircraft next summer.”

He added winter and summer bookings are down by 35% and 25%, respectively.

Airtours UKLG told directors of all its individual businesses – except the airline – to identify staff they could lose as the operator bowed to the market situation and made “unavoidable” cutbacks.

Some staff are to go immediately, but others have opted for a consultation process which could result in job shares or part-time work arrangements.

A spokeswoman said: “We are in a strong financial position and have taken steps to tighten our belts, but job losses are unavoidable.

“This is not a process we want to go through again, but as the situation develops we may have to come back to review this.”

As Travel Weekly went to press Thomas Cook AG announced all its hotel purchasing and destination management divisions would be run centrally to align the group’s pan-European business.