FILE PHOTO: AirAsia Airbus A320-200 planes are seen on the tarmac of Kuala Lumpur Worldwide Airport 2 (KLIA2) in Sepang, Malaysia, February 4, 2020. REUTERS/Lim Huey Teng
KUALA LUMPUR (Reuters) – The founders of Malaysia’s AirAsia Group Bhd (AIRA.KL) is not going to take salaries and its workers has agreed to an as a lot as 75% minimize in pay because of the influence of the novel coronavirus outbreak on the airline, its chief govt mentioned late on Saturday.
Tony Fernandes mentioned in an Instagram submit that he and Govt Chairman Kamarudin Meranun “is not going to be taking a wage throughout this era”, whereas workers from throughout the enterprise “have accepted short-term pay reductions of wherever between 15-75%, relying on seniority, to share the influence that is having on our enterprise”.
The funds airline has no incoming income and 96% of its fleet is grounded, Fernandes mentioned.
“We nonetheless have important ongoing monetary commitments corresponding to gasoline suppliers and leasing brokers,” he mentioned.
The airline has retained all its workers.
AirAsia has additionally urged prospects to simply accept credit score affords for flights canceled as a substitute of refunds.
AirAsia has suspended most of its flights since March and its long-haul arm, AirAsia X Bhd (AIRX.KL), parked most of its plane at its Kuala Lumpur hub till Might 31.
Reporting by Liz Lee; Modifying by Christopher Cushing