More layoffs if interstate travel ban not lifted, says AirAsia

More layoffs if interstate travel ban not lifted, says AirAsia

AirAsia Group president Bo Lingam says it is critical for internal routes to reopen 'as soon as possible'.

AirAsia, which has already reduced its staff strength by more than 10% could lay off more workers if domestic travel is not allowed soon.
PETALING JAYA:
Budget carrier AirAsia is preparing to lay off more staff unless interstate travel restrictions are lifted by the end of April.

In an interview with Nikkei Asia, the group’s president Bo Lingam said it was critical for internal routes to reopen “as soon as possible”.

“I think the green states can be opened first, and we would appreciate it if it’s by next month,” he was quoted by the financial daily as saying, referring to the end of April.

His comments came a day after Putrajaya gave the nod for domestic tourism movement within states under the recovery movement control order (RMCO).

States under the RMCO are Melaka, Pahang, Terengganu, Sabah, Putrajaya, Labuan and Perlis.

Lingam said they would have to dismiss “more employees on a furlough basis” if the interstate travel ban remained until May.

Already, some 3,000 staff, most of them pilots and back-office staff, have been hit by the measure.

Lingam said furloughed workers only received medical and travel benefits.

“We will pay them medical benefits in full just like pre-Covid-19 and they will be first to be recalled once we fly our airplanes again,” he said.

In October last year, AirAsia Bhd and AirAsia X Bhd retrenched 10% of their 24,000 employees.

In June, AirAsia reduced more than 250 of its staff due to the pandemic.

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