AirAsia is one of the very few airlines all over the world which has decided not to let go of any of their employees. While this is a move from the airline worth appreciating, the employees will be facing a salary cut. Given that the job security of the employees is still there, pay cuts are nominal and expected. This is an adamant time for aviation industry all over the world and not just India. The global pandemic – COVID-19 outbreak isn’t going to be over soon. This is going to hamper the revenue streams of many airlines. Even when the global pandemic is declared to be over, there is no chance that the pre-crisis demand for air travel will return right away.
AirAsia CEO Tony Fernandes Asks Customers To Take Credit Instead of Refund
There is not enough cash with most of the airlines because of stopped commercial operations. This is why AirAsia CEO Tony Fernandes has asked the customers to accept airline credits instead of demanding for cash refunds. The airlines still have fixed costs, and for that, they need cash. He further said that AirAsia is one of the most affected airlines due to the lockdown, and that is why it won’t be able to provide cash refunds.
96% Of The Fleet Grounded Is Creating Problems
Tony Fernandes noted that the airline has to pay money to parties such as leasing agents and fuel suppliers and while their 96% of the fleet is grounded, it has become tough for them to do so. If the airline returns all the cash it has to the customers, then it will be tough for them to stay afloat. They are not letting go of any of the employees, which means they will have a lot of people to pay as well, regardless of a pay cut.