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Isavia´s response to the effects of Covid-19

Isavia´s response to the effects of Covid-19

Isavia has currently started laying off employees in response to the enormous effects that the spread of COVID-19 has had on the volume of tourists coming to Iceland. The majority of the layoffs will be at Keflavík Airport, where it is clear that there will be a decrease in traffic for an undetermined period. Considerable efforts are made to focus on making the company ready to advance again when the effects of COVID-19 begin to decrease.

The measure will impact 138 employees, as 101 employees will be laid off and 37 employees will be offered continued employment but with reduced future work proportion. In addition, summer hirings will be substantially reduced.

 “Unfortunately, we cannot avoid employing these measures, and they will only affect jobs in areas where work will decrease indefinitely,” says Sveinbjörn Indriðason, CEO of Isavia. “We believe, however, that it is important at the present time to respond to the request of the authorities that companies who are able to do so stand guard over jobs in the country. Our position at present is such that our liquidity position is strong, so our first response is to take account of this fact.”

“The effects of the downturn will be greatest on our frontline staff at Keflavík Airport in positions such as airport security, passenger services and car park services. In other respects, there are a number of projects waiting that involve further developing the company’s infrastructure,” says Sveinbjörn. “We need to be aware of the fact that the uncertainties in the next few months will be considerable, and we will re-examine the situation on a regular basis. We must employ every measure in our arsenal to ensure that the company’s access to liquid assets will last us until the economy picks up again. We would like to thank all the excellent people who are now leaving the company for their work, and we wish them all the best.”

Isavia’s parent company, together with the subsidiaries Isavia in Iceland and Isavia ANS, will not, at present, take advantage of the measures offered by the authorities which involve the payment of unemployment benefits in conjunction with reduced employment proportion due to the temporary downturn. The layoffs at present are intended as a response to long-term decreasing scope, while the measures offered by the authorities are first and foremost in response to the short-term effects of the pandemic. The Duty Free Store will be using the measures proposed by the authorities. This will allow the company to avoid suspending its employees.