KUALA LUMPUR – AirAsia Group Bhd (AAGB) will place up to a third of its pilots on furlough for the first quarter of next year due to tough market conditions brought about by the coronavirus pandemic.
The furloughs begin on January 1 until March, and affected pilots are expected to take a 75% pay cut on their full basic salaries, according to a memo sighted by The Vibes.
Selection is “purely based on seniority” using the last-in-first-out system, and furloughed pilots will be notified by 8pm today, AAGB said, adding that those affected will be removed from duty beginning tomorrow.
These pilots are not required to attend training during that period, the discount carrier said, but will have to undergo 10 days’ training should they be called back.
AAGB said it will continue to monitor the situation over the next two weeks “for improvements in case it can be cancelled. Can be cancelled early if required”.
Retained pilots will not see further pay cuts while those furloughed will be issued letters allowing them to settle personal commitments, such as bank loans, and retain their employment benefits, it added.
The carrier is also providing an option for affected staff, including pilots, to apply for other positions within the group.
However, AAGB warned that it “can’t guarantee if there will be another exercise after three months. Hopefully, this will be (sic) last.” If a furlough is required past March, the group said it will consider doing so based on rotation.
Tracking its aviation peers, AAGB posted a wider net loss of RM851.78 million for the third quarter ended September 30 compared with last year’s RM51.44 million.
AAGB’s share price closed 2.53% lower at 96 sen, giving the discount carrier a market capitalisation of RM3.23 billion. – The Vibes, December 15, 2020
