Rolls-Royce plans to close its jet-engine factories for two weeks this summer as it controls costs due to the effects of the Covid-19 pandemic.
The aero-engine maker has begun talks with unions about closing and cutting costs at their civil aerospace unit.
“As we continue to manage our cost base in response to the continuing impact of the Covid-19 pandemic on the entire commercial aviation sector, we are proposing a two-week operational closure of civic aerospace in the summer,” he said in a statement email.
Rolls-Royce’s finances were hit by Covid’s crisis as airline customers have set up planes. He warned last month that travel would be even more limited than expected this year, leading to more cash flow.
Rolls is expected to save tens of millions of pounds in salary, as well as energy and other running costs.
Employees have been told that the two-week pay they lose will be spread over the year to reduce the impact on their income, according to the Sunday Telegraph which first reported closing two summer weeks. The move is expected to affect all 19,000 employees in Rolls ’international civil aerospace sector, including 12,500 in the UK, which makes jet engines for airlines.
The more contagious variant of the Covid-19 virus has affected the travel industry’s expectations of a strong reversal in sales in 2021.
Last month, Rolls-Royce noted that the “more infectious versions of the virus were creating additional uncertainty”, as it cut the forecast for engine flight hours this year to around 55 %, compared to pre-Covid levels in 2019.
“Improved restrictions are delaying the recovery of long haul travel in the coming months than previously anticipated, putting additional financial pressure on our customers and the aviation industry in general, and they all affect our own cash flows in 2021, ”the company warned. on 26 January.
The UK government aims to offer the first coronavirus vaccine to all adults in the UK in early May. But senior MPs warned last week that summer holidays abroad may not be possible unless other countries make better progress on vaccination.
Yvette Cooper, chair of the home affairs select committee, said it was vital that Britain’s immunization program was protected. “The vaccination program is very important and we need to make sure that it is protected from the threat of new changes, and there may be others as we go along,” she said.
UK tourists had reported that many shoppers are setting their sights on an October trip abroad, rather than summer holiday contracts, suggesting that many Britons are planning a side holiday -in the UK in the summer.
Thomas Cook said 40% of his recent holiday destinations are for October onwards – compared to around 10% at the beginning of January, and Brittany Ferries said there are already new tickets for summer 2021 50% down on pre-Covid years, with some pre-registered customers starting to cancel.
Reuters contributed to this report.