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Amadeus plans for €300M cost-cutting program as coronavirus slams aviation

03/30/2020| 1:09:49 PM| 中文

The company is also canceling a dividend payment of €320 million that had been scheduled for the general shareholders’ meeting in June.

Amadeus is reducing costs and capital expenditure by €300 million due to the impact of COVID-19 on the airline sector.

In a statement to investors issued on Monday, the company says it had “adopted a set of measures to protect its liquidity.”

The company has been hit by a "combination of trip cancellations and country-specific restrictions on international flights has had a severe impact on the global airline industry and as a result, on our volumes, both bookings and passengers boarded," it says.

In addition to the cost-cutting exercise, Amadeus says it is close to securing €1 billion in liquidity, which is on top of its current €1 billion “revolving credit facility” and €660 million in cash reserves.

The company is also canceling a dividend payment of €320 million that had been scheduled for the general shareholders’ meeting in June.

Travel tech provider Sabre has also announced a large swathe of measures to mitigate the financial impact of the coronavirus outbreak.

The cuts range from offering voluntary unpaid leave, severance and early retirement to staff across the world to scaling back its third-party contracting and vendor costs.

U.S.-based employees will also face an undisclosed reduction on their base salary and CEO Sean Menke is taking a 25% pay cut.

Sabre staff outside the US will participate in the compensation reduction on a voluntary basis.

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TAGS: Amadeus | Sabre | GDS | coronvirus
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