AirAsia has retrenched 10% of its 24,000 employees last week, according to CEO Tony Fernandes during a recent Buletin Utama TV3 interview. Fernandes said it has built a great company because of 24,000 great people and the airline has lost some of them through no fault of theirs.
"My responsibility is to try and get the airline back so they can come back or provide them other jobs," he said. Fernandes explained that With 80 out of 245 planes being able to fly at the moment, the airline has "too many staff". While the latest 10% job cuts are "far less than most airlines", Fernandes said it hopes this is the last. AirAsia declined to comment on A+M's queries.
In June, the airline also terminated more than 300 employees, according to a report by Astro AWANI. AirAsia Malaysia CEO Riad Asmat said then that the organisational restructure was a "viable alternative at present" due to the challenging situation.
Meanwhile, Fernandes also said in the interview that the government's PRIHATIN Rakyat Economic Stimulus package is "good enough for [the airline]" and that "it is not a bailout, that is a loan, and [it has] to pay back that loan". He addded that those saying PRIHATIN is a bailout is a loan. Fernandes also confirmed that AirAsia had sought funding of RM2 billion to RM2.5 billion. At the same time, The Star also reported last Friday that an American lender has expressed interest in loaning the airline US$1 billion for the digital assets that AirAsia has amassed over the years. Meanwhile just today, Nikkei Asia said the Malaysian government has approved a RM1 billion loan to AirAsia.
Its long-haul arm, AirAsia X, also recently proposed a restructuring plan to facilitate an injection of fresh equity which will allow the airline to fly again. The proposed plan includes a debt restructuring scheme, revision of the group's business plan, engagement with business partners and airline customer and travel agents. The airline added that it is facing "severe liquidity constraints" to meet debt and other financial obligations with no imminent return to normalcy.
Separately, AirAsia realised its super app dream just last week by unveiling Airasia.com as ASEAN's super app, offering a simpler, faster and more convenient user experience with over 15 types of products and services under three main pillars - travel, eCommerce and fintech. Among the list of categories include flights, hotels, SNAP, activities, insurance, Big Rewards, unlimited deals and wifi.
Join us on a three-week journey at Digital Marketing Asia 2020 as we delve into the realm of digital transformation, data and analytics, and mobile and eCommerce from 10 to 26 November. Sign up here!
How AirAsia RedRecords integrates its artists into the passenger journey via in-house assets
AirAsia unveils new marketing solutions group, parallels the likes of Amazon
AirAsia BIG Loyalty rebrands to show offering beyond flights
After Trip.com, AirAsia takes to the skies with Agoda to revive SEA travel
Neelofa steps down from director role at AirAsia Group
AirAsia’s logistics arm Teleport launches 'Shop Sama Kamek' campaign
AirAsia and Trip.com Group plan for travel revival in SEA and China
AirAsia's BIG Loyalty introduces new face of the brand 'BIGGIE'
AirAsia diversifies eCommerce business to include B2B agriculture
AirAsia cuts jobs, ex-employee Allan Phang creates job sheet for former colleagues
AirAsia's Teleport names Grace Chin to newly-created marketing lead role
Get the daily lowdown on Asia's top marketing stories.
We break down the big and messy topics of the day so you're updated on the most important developments in Asia's marketing development – for free.subscribe now open in new window