Aviation sector struggling with personnel issues amid COVID-19

Nhập mô tả cho ảnhietjet has taken various solutions such as increasing cargo transportation, upgrading fare classes, offering new services and expanding investment areas to maintain its operation and workforce. (Photo: VietnamPlus)

Hanoi (VNA) – Despite difficulties caused by COVID-19, domestic airlines are striving to maintain its workforce in anticipation of market recovery.

COVID-19 vaccinations that are being rolled out in Vietnam and other countries worldwide are expected to help recover the aviation sector in the middle of the third quarter of this year.

Still thirsty for employees

The International Air Transport Association (IATA) expects net airline industry losses of 47.7 billion USD in 2021 with a net profit margin of minus 10.4 percent.

Despite an estimated 2.4 billion people travelling by air in 2021, airlines will burn through a further 81 billion USD of cash, it said.

Vietnamese airlines have also suffered from severe losses as COVID-19 has forced the closure of international air routes and the reduction of domestic flights. 

Given this, the airlines have no choice but to cut their personnel. However, they still maintained the training of pilots and flight attendants in preparation for market recovery.

Ho Ngoc Yen Phuong, Deputy General Director of budget carrier Vietjet, said her carrier has taken various solutions such as increasing cargo transportation, upgrading fare classes, offering new services and expanding investment areas to maintain its operation and workforce.

With the expansion of airports, the domestic aviation sector is expected to grow after COVID-19, said Nguyen Quoc Phuong Deputy General Director of Airports Corporation of Vietnam (ACV).

Thousands of jobs will be generated in the sector in the coming years, he said, adding that apart from pilots and flight attendants, there will be many other vacancies available.

Therefore, the sector should well orient training courses to meet new demands in the near future, he suggested.

Avoiding path of failure

According to Dang Ngoc Hoa, Vietnam Airlines Chairman, about 9,700 out of the national flag carrier’s 20,000 employees have temporary lost their jobs or have work hours reduced due to the pandemic.

The carrier has placed 30 percent of its staff on leave without pay, and cut wages of the others by roughly half, he said.

With the efforts, Vietnam Airlines expects to save more than 700 billion VND (30.4 million USD) from personnel expenses this year, Hoa said, noting that the carrier will work to keep typical and quality workforce.

At the same time, the company has implemented a number of policies to support its labourers, using social welfare funding left from the previous year.

For the employees on leave without pay, each has received 1.8 million VND monthly, with their social welfare benefits such as health and voluntary pension insurance maintained.

Vietnam Airlines will put forth a roadmap to bring its employees back to work after the market recovers. (Photo: VietnamPlus)

Vietnam Airlines will also draw up a roadmap to bring its employees back to work after the market recovers, while providing them with updates on the corporation’s operation, and labour and wage policies to raise their confidence.

The carrier would avoid the path of failure of American Airlines that has to cancel hundreds of flights due to labour shortage as it had sharply reduced personnel to stay afloat amid COVID-19 earlier, the Chairman said.

Hoa said despite the pandemic's impacts, the airline has tapped into every opportunity to raise revenue such as by increasing flights to transport cargo, repatriate overseas Vietnamese, and carry foreign experts to the country, and opening over 20 domestic routes to seize chances created by the domestic market’s quick recovery.

Its efforts, together with assistance from the Government and relevant agencies, have helped Vietnam Airlines reduce losses by nearly 5.8 trillion VND last year, Hoa added./.