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KUALA LUMPUR (September 28): 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 crisis.
A source, who has access to information provided by Chief Executive Officer (CEO) Riad Asmat in a town hall session today, told Bernama that no details were announced, but that affected staff would be informed no later than 72 hours. .
“We are facing a very difficult time. (In) the current state, we are unable to maintain ourselves as we are. (It is) very challenging … not easy. (We are) trying to sustain the business (while at the same time) trying to sustain everyone.
“We are doing our best to survive to support as many of you (as possible) with the planes we use… Today we are very careful with the details (when making the decision). Unfortunately, (we have decided) to let some of you go, ”said Riyadh, according to the source, who requested anonymity.
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 group had weathered this storm successfully.
“For those affected, I am sorry. You have to stay strong. We will support you in any way and help you get through this. It’s not something I’m proud of, but as the CEO of the company, I take full responsibility and accountability.
“We did our best. The company needs to survive … Now it’s all about survival, ”said Riyadh, 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 of people would be affected and that the last effective day would be at the end of October.
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 it is best to withdraw and we hope we can give people certainty, ”said Benyamin.
The source said AAX would review the base salary for the workforce across the board.
In early June, AirAsia cut more than 250 of its workforce in light of Covid-19.
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