State-owned Ethiopian Airlines have started furloughing employees to deal with the coronavirus pandemic, which has pushed airlines across the globe to cancel flights and shut operations.
According to media reports, Ethiopian Airlines could lay off thousands of employees with no pay for three months and possibly longer in the midst of a coronavirus pandemic.
However, Ethiopian Airlines has clarified that it has laid off only contract employees under an agreement made with their recruitment agencies.
In a statement, the airline said, “As our flights to over 87 destinations suspended and over 80 of our fleets are grounded, we have instructed some of our workers to take a paid leave.”
Last month, Ethiopian Airlines announced that it has suspended its operations to over 80 destinations due to the Covid-19 pandemic.
During the same period, the airlines announced that all ticket offices in the country would be closed as part of the social distancing policy to fight the coronavirus pandemic.
However, despite airlines all over the world cancelled operations due to the coronavirus outbreak, Ethiopian Airlines continued flying to major destinations including China.
Ethiopian Airlines announced suspending 30 flights and losing $190 million because of the coronavirus pandemic.
Over the years, Ethiopian Airlines has established itself as Africa’s biggest airline and also one of the most successful state-run airlines in the world.
Last year, media houses reported that Ethiopian Airlines has shown interest in South African Airways (SAA) as the embattled state-owned carrier has opened up to the possibility of outside investment.