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PETALANDO A JAYA: AIRASIA BHD
It resumed its scheduled domestic flights in Malaysia yesterday, but is looking to cut costs aggressively and not receive any planes this year.
The airline will begin flying to selected international destinations soon subject to approval by the authorities.
His planned flight resumes include Thailand on May 1, the Philippines on May 16, and Indonesia on May 7.
Chief Executive Datuk Kamarudin Meranun said AirAsia hoped that its initiatives to reduce its cost of operations would result in the company saving 30% of its cost this year.
Among the cost reduction measures are plans to not receive new aircraft deliveries this year and its goal is to end 2020 with 242 aircraft.
“This is a net reduction from a plane from last year. We are (also) reviewing our order book with Airbus, ”Kamarudin said in a statement.
“The decision to sell and lease our aircraft in late 2018 has given us more flexibility to reduce growth than owning an aircraft today. We were also able to get the best price for those aircraft under the best market conditions, while eliminating the residual risk of owning aircraft. “
He said the company has also restructured a significant portion of the fuel coverages with its supporting counterparts and is in the process of restructuring the remaining exposure.
“This will help deal with excess volume hedged against expected fuel consumption after Covid-19 and will reduce hedging losses if the price of fuel remains at today’s prices.
“Other measures in cost management and containment include both management and senior employees of the AirAsia Group who offer a salary sacrifice, renegotiate contracts and defer all non-essential expenses,” said Kamarudin.
All AirAsia flights, in the future, will adhere to strict health controls and the social distancing protocol, in accordance with the regulations.
“The resumption of services will initially be for selected key domestic routes, which will gradually increase to include international destinations around the region once the situation improves and governments lift borders and travel restrictions,” the carrier said.
Kamarudin said the company’s strong foundation, coupled with strong relationships with suppliers and partners, have enabled it to return to stronger service during these difficult times.
“AirAsia actively works with all relevant regulators, local governments, civil aviation and health authorities, and adheres to the guidance of the World Health Organization and the International Civil Aviation Organization to ensure that the highest standards of compliance exist. and compliance for each flight on which we operate. our network, “he said.
“We will require guests to wear masks and practice universally recommended protective precautions, including social distancing and observance of high personal hygiene. All of our aircraft, which are equipped with hospital standard high-efficiency particulate air filters, will also be shipped for complete disinfection every nighttime shutdown, ”he added.
AirAsia said it had participated in a series of recovery flights initiated by governments and private companies during the period of the outbreak.
This is giving a boost to their charter service, he said.
“Despite the unprecedented environment we currently find ourselves in, we continue to build on our strengths and especially our brand to emerge stronger when normalcy returns.
“We hope to continue maintaining 1.3 million jobs and counting in the sector in the region, directly and indirectly, and to double our economic contribution to Asean’s GDP from US $ 15.3bil in 2018 to US $ 35bil in 2030,” he said.
The statement also said that AirAsia would continue diversifying its revenue base during this difficult period, with a more rigorous and market-friendly approach to further expand its digital and auxiliary businesses such as Santan, Teleport and BigPay.
“Teleport is prioritizing the transportation of medical supplies to front lines and emergency medical personnel and has been operating several chartered flights, especially for cargo shipping,” he said.
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