KUALA LUMPUR – Malindo Airways Sdn Bhd has effectively cut more than half of its 3,200-strong workforce today after the collapse of its business due to the Covid-19 pandemic, according to a retrenchment notice sighted by The Vibes
The hybrid-full service carrier informed the 2,200 affected staff members that it was “forced to take several measures to mitigate the effects of the pandemic on our business”.
Some of the steps taken by the airline to reduce operational costs included suspended recruitment, implementing a work-from-home policy, reducing the number of staff required to work to a “need only” basis and offering voluntary long-term unpaid leave as well as voluntary separation schemes.
“Regrettably, these efforts were insufficient to avoid and overcome the severity and prolonged impact of the Covid-19 pandemic on our business,” Malindo chief executive Captain Mushafiz Mustafa Bakri said in a statement today.
Ever since governments around the world took steps to mitigate the economic effects of the pandemic, which included restricting international travel, the airline industry had taken a huge hit.
Malindo was “only doing 10% of its pre-pandemic monthly revenue. Our fleet size today is 50% of what it was earlier and even with the current reduced fleet, most of the aircraft are on long-term parking,” said Mushafiz.
Staffers will be notified of “the termination compensation benefits including company asset handover process”, the company said, adding that it will assist affected staff members via Socso’s Employment Insurance Scheme.
“We are also currently talking to service providers who will be able to assist displaced colleagues with retraining and onward job placements.”
The Vibes reported on October 12 that Malindo would embark on drastic cuts of up to 2,200 jobs and reduce its fleet size to five Boeing 737 jets and six ATR turboprops.
Malindo, whose shareholders include Indonesia’s Lion Air Group, registered a loss after tax of RM582.77 million for the financial year ended December 31, 2018. – The Vibes, October 28, 2020
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