Based on the announcement of AirAsia’s CEO Riad Asmat on June 4, AirAsia Group Bhd is expected to retrench 111 cabin crew members out of 1,900 existing ones, 172 pilots, and 50 engineers in order to downsize operations.
Other than AirAsia Berhad, other subsidiaries under the group such as AirAsia X are also involved in the retrenchment.
Those involved in the retrenchment scheme would be notified via e-mail within 24 hours with the assuring compensation from the company.
Riad said that all the reduction steps, along with the monitoring of internal and external factors, proving to be inadequate for AirAsia.
Besides, Riad also apologised to the crew, stating the company had no other option that could be regarded for the time being.
It remains unknown as to whether there will be any reduction in salary to the staff who will not be retrenched.
Photo Source: Nikkei Asian Review
However, as for AirAsia X, no exact number of layoffs is announced but one source said the company will operate using 15 to 16 aircraft once international flights resume in contrast to the 32 aircraft owned by AirAsia X.
Moreover, it is stated that the bonuses and incentives will be removed, but basic salaries and allowances for flights, sectors, and overnight stays, will be maintained.
Source: Malay Mail
Cover Photo: Nikkei Asian Review | Malay Mail
