Layoffs at Malaysia’s AirAsia in its second round
KUALA LUMPUR (MALAYSIA) – Malaysia’s flagship budget airline AirAsia Group Bhd are now considering to lay off hundreds of employees, as it is on the road to survive the coronavirus pandemic, state news agency Bernama reported on Monday.
Citing a source who were part of separate town hall sessions held by both units on Monday, Bernama reported that both its Malaysian unit and AirAsia X Bhd have plans to cut down some hundreds of staff.
The staff, who might be affected, will be informed within 72 hours. AirAsia Malaysia will however provide the employees assistance such as medical benefits and flight coupon redemptions year-end.
Chief Executive Officer Riad Asmat said that though the airline group had tried to get in touch with the government, it had not received any feedback.
Those laid off will then be hired again once the airline rides push through the pandemic. The remaining staff will not have to bear pay cuts.
Meanwhile, AirAsia X will conduct the exercise, which involves technical staff and cabin crew, on a “last in, first out” basis.
Chief Executive Officer Benyamin Ismail said, “I don’t know when we will be flying. We thought it is for the best to retrench and we hope we give certainty to the people.”
Bernama reported that salaries will be reviewed, and some staff would be given unpaid leave, which is likely to last for a six-month period or until the situation improved.
AirAsia Malaysia’s layoffs would be over by the end of this month, while on the other hand, affected AirAsia X staff will leave by the end of October.