The airline said the freeze, which will apply to everyone from senior directors to ground crews, was necessary ‘in order to protect staff from any redundancies’.
However, Virgin believes cost-cutting measures already implemented will mean the airline will still make a profit this current financial year, which finishes at the end of February, and eligible staff will benefit from the company profit sharing scheme, Airshare.
Virgin chief executive Steve Ridgway said: ‘During a recession, we all have to act responsibly to ensure that jobs are protected and that consumers get the best service.
‘A pay freeze among our staff will help us remain strong during a period of lower demand for air travel.
‘While consumers are benefiting from the lowest ever fares to some of our destinations, it means that our revenues will be lower this year and so we have to reduce our costs and capacity as a result.
‘We will fly where there's demand but won't be irresponsible and run services for the sake of it. Tougher economic times mean we have to take measures which will protect our people over the longer term.’
Recent Virgin Atlantic articles from e-tid.com:
Virgin celebrates brave new world (05/01/09)
Virgin buys XL’s Florida programme (19/12/08)
BA and Virgin lower fuel surcharges (17/12/08)
Virgin seeks bmi tie-up as Sir Michael sells (29/10/08)
And see also:
BA predicts £150m loss (26/01/09)