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KUALA LUMPUR: Low-cost carrier AirAsia Bhd may again lay off a few hundred employees as it seeks to survive in an industry hit hard by the Covid-19 pandemic.
A source, who has access to information provided by CEO Riad Asmat in a town hall session today, said no details were announced, but affected staff would be informed within 72 hours.
“We are facing a very difficult time. (In) the current state, we are unable to maintain ourselves as we are. (It’s) very challenging, ”Riyadh was quoted as saying by the source, who requested anonymity.
“(We are) trying to sustain the business (while) trying to sustain everyone.
“We are doing our best to survive to support as many of you (as possible) with the planes that we use.
“Today we are very careful with the details (when making the decision). Unfortunately, (we have decided) to let some of you go. “
According to the source, the AirAsia management team would provide the affected personnel with the necessary assistance, such as medical benefits, exchange of flight coupons until the end of the year and advice.
Citing Riyadh, the source said the laid off staff would be rehired once the airline had successfully weathered the storm.
“For those affected, I am sorry. You have to stay strong. We will support you in any way (we can) and help you get through this.
“It is not something I am proud of, but as CEO I take full responsibility.
“We did our best. The company needs to survive, ”Riyadh was quoted as saying, indicating that the reduction will be completed by the end of this month.
There will be no pay cuts for those who stay, the source said.
According to the source, Riyadh said the airline group had contacted the government but had received no comment.
“We are surviving alone. It is not something new. We are survivors. We have not received any direct help yet, ”said the CEO.
Meanwhile, in a separate session, AirAsia X Bhd (AAX) CEO Benyamin Ismail announced that the long-haul carrier was considering a broader downsizing exercise, involving employees from the technical side to the crew. cabin.
It would be done on a “last in, first out” basis, it was quoted as saying, indicating that hundreds would be affected and the last effective day would be at the end of next month.
The source said that some employees would be offered unpaid leave, which would likely be for a period of six months or until the situation improved.
“I don’t know when we will be flying. We think that the best thing is to reduce the expenses and we hope to give certainty to the personnel ”, said Benyamin.
The source said AAX would review basic workforce wages across the board.
In early June, AirAsia laid off more than 250 employees in light of the pandemic.
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