Loganair has announced plans to cut nearly 70 jobs – and cut salaries by 20% over winter.
Loganair, which has a total staff of 850, has launched a consultation with employees likely to be affected.
The airline is headquartered in Scotland and has staff at its airport hubs including Inverness, Aberdeen, Glasgow, Edinburgh and Dundee.
Chief executive Jonathan Hinkles said 68 roles are at risk for redundancy, with some of its staff will be taking a 20% pay cut over the winter months.
He added: “Like everyone in the aviation industry, we’ve been incredibly hard-hit by the Covid-19 pandemic.
“It has been without a doubt the biggest ever challenge for our industry and the biggest challenge in Loganair’s 58-year history.
“We have worked hard to protect jobs, but recovery across the sector has been incredibly slow.
“I sincerely regret that we have been left with no option but to enter into a consultation process for 68 roles which are now at risk of redundancy, from a total workforce of 850.
“The closure of our base at Chester is the largest single step, whilst other staff members affected are based in Glasgow, Aberdeen, Edinburgh, Dundee and Inverness.
“Loganair is a small, tight-knit business and we will continue to do all that we can to support everyone affected by the prospect of redundancy.
“This will include options for relocation where openings exist. It will come as no consolation to those affected that the scale of proposed redundancies at Loganair is far lower than in other UK airlines.”
In order to reduce redundancies, a company-funded Skills Retention Programme has been launched to help 40 other staff members who are unable to work due to the downturn in air traffic.
Mr Hinkles added: “The programme is designed to provide a bridge between today’s challenging market conditions and an expected increase in flying in the airline’s summer 2021 schedule, for which tickets are now on sale.
“It will run from November 1 – after the closure of the government’s Coronavirus Job Retention Scheme – until March 31. Other employees will also be taking a 20% pay cut over the winter season.
“The Loganair Skills Retention Programme demonstrates our commitment to safeguard as many jobs as we practically can.
“By providing this programme, we’ve been able to reduce the number of redundancies that we’d otherwise need to make, whilst at the same time protecting the skills of employees whose capability will be an essential part of our future.”