The Air Asia Group will cut its workforce by up to 30 per cent, and reduce remaining staff salaries by up to 75 per cent “in an attempt the save the airline” as the carrier struggles to cope with the coronavirus pandemic, according to a report by Nikkei Asian Review.
The low-cost carrier is also considering selling a 10 per cent stake in the airline to raise cash, added the Nikkei Asian Review report, citing multiple anonymous sources.
The Air Asia Group, which operates in Malaysia, Thailand, Indonesia, Japan, India and the Philippines, has 20,000 employees according to the report. The lay-offs are expected to continue through to the end of July, the report said.
In early April, Air Asia Group’s CEO Tony Fernandes had pledged to keep all of the airline’s staff despite low revenue due to the slump in travel demand and growing government restrictions in the wake of the coronavirus crisis.
Employees from across the group had accepted temporary pay reductions of anywhere between 15-75 per cent, the airline said at the time.