Almost 250 jobs are at risk at Birmingham Airport after plans were revealed to cut the workforce by more than a quarter.
Bosses said consultation has begun after airport staff were informed of the move in an internal announcement.
It is happening because of what the airport said was “the significant impact of the Covid-19 pandemic”.
It came after baggage handler Swissport announced that it is set to cut more than 500 jobs at the airport.
The airport company itself employs around 900 people meaning the loss of 250 jobs would represent 27% of its workforce.
Birmingham Airport’s CEO, Nick Barton, said: “The impact of the Covid-19 pandemic at Birmingham Airport has been significant, with a passenger scenario for this financial year of 90 percent less than in 19/20.
“Whilst we have tried to protect as many jobs as possible by limiting spending and maximising the use of the Coronavirus Job Retention Scheme, the continued decline in traffic and loss of income is unsustainable.
“Maintaining employment at the same level as that prior to the pandemic is sadly not possible and it is therefore, with regret, that we must now consider resizing and restructuring the business.”
Most Read
Mr Barton said a consultation process had now begun.
“We have commenced discussions with the union and a formal consultation with affected colleagues will begin in the coming weeks, as we consider reducing the employee headcount,” he said.
“This could lead to up to 250 redundancies affecting both permanent and seasonal employees.
“The last few months have been very challenging for many of our employees and we understand that this news will be disappointing, particularly whilst many remain on furlough. “However, we have had to take this difficult decision in the best interest of the business in the long-term, after what has been the most significant downturn in our history.”
The trade union Unite has described the airport’s move as “premature” but also called for the Government to step in to rescue the aviation industry.
It said the airport generates £1.1 billion per annum for the region’s economy and helps support more than 25,000 jobs, with around 8,000 people either employed at the airport or nearby in airport-related activities.
It said the wellbeing of the airport is vital to the region’s economic success.
Don’t miss
Unite regional officer Peter Coulson said: “Unite will begin formal consultations with Birmingham Airport early next week.
“The challenges being faced at Birmingham Airport demonstrate why it is imperative the Government hesitates no longer in providing specific support for aviation.
“It is the sector which has been most severely affected by the Covid-19 pandemic.”
Want more business news straight to your inbox?
BusinessLive is your home for business news from around the country - and you can stay in touch with all the latest news through our email alerts.
You can sign up to receive morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss.
Visit our email preference centre to sign up to all the latest news from BusinessLive.
Mr Coulson added: “While Unite understands the unprecedented challenges facing the aviation sector as a result of the Covid-19 pandemic, this decision is premature.
“The Government’s job retention scheme continues until October and with air bridges potentially opening the situation in the autumn may look very different.
“Our call to the airport is put the redundancy programme on hold.”
Unite has produced a blueprint of how the Government should intervene across the aviation sector in a bid to protect jobs at both airlines and airports.
It wants to see loans, which would come with conditions attached, regarding executive pay, corporate governance and requiring stringent environmental standards to be adopted to reduce the industry’s carbon footprint.