Russia is set to significantly increase its expenditure on defence and national security according to a draft 2023 to 2025 budget.
Aer Arann continues cost reductions
Aer Arann says that as it continues with its cost reduction programme, salaries are to be decreased across the airline. However, more jobs have been saved as Aer Arann continues to redefine its business model to better position the airline in the current economic climate.
Salary reductions at the airline will average 7% and will be tiered with higher salaries decreasing by a greater percentage. Executive and management salaries will reduce by an average 17%.
Redundancies at the airline since the cost reduction programme was introduced last October will now be contained at about 60. The vast majority of these job cuts were implemented before the end of 2008.
Initially the airline had planned on up to 100 redundancies but this was later reduced to 70 when a new base was opened on the Isle of Man to serve the new Aer Arann business route to London City Airport.
The airline's chief executive Paul Schütz commented, "We are committed to taking all steps necessary to ensure the company’s viability and long term development in this challenging economic environment. While salary reductions are regrettable, they are happening across the airline industry and are part of a necessary rebalancing programme as we create a business structure that will allow us to preserve jobs and build for the future.
"We cannot stand still as the economy finds its level,” Schütz added. “We have to ensure that we are fit and lean and ready to respond to market conditions. That means controlling our costs while at the same time continuing to improve the level of service that we offer our customers.
"On behalf of the airline I would like to thank all staff for their continued loyalty to the airline and their ongoing efforts to develop our business model so that we can continue to stand out as the airline that combines great value fares with high quality service,” Schütz concluded.
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