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Another Casualty From Covid-19 – AirAsia to Cut Pay, Other Staff Perks Due

by Brian Chan March 10, 2020

Would say that the Covid-19 is really having a hit to the economy especially if you’re in the travel line. As per reported by the focusmalaysia.my, the BUDGET carrier AirAsia Group Bhd (AAGB) has told its staff to brace for a series of cost-cutting measures, including receiving a lower salary, due to the challenging business environment.

The acting CEO Tharumalingam Kanagalingam (also known as Bo Lingam) has informed all their staff yesterday in an internal memo sighted by FocusM that due to “weaker” economic conditions caused by Covid-19, among others, “everyone needs to be financially prudent and proactive.”

Bo Lingam made the announcement after reviewing “every option to minimise the impact of any measures” on staff. The action on this is that the group will:

  • reduce wage costs. Our highest earners have decided to lead by example and agreed to take a pay cut.
  • suspend ‘Free Munch’ for all non-operations managers and above.
  • restrict duty travel unless absolutely necessary. I would encourage all of you to use voice or video conferencing.
  • cancel all big social events for the year.
  • suspend external training unless it is required by law or regulation.”

He added that these measures were “not permanent” and will be subject to periodic review “until the situation normalises.” But AAGB might need to announce additional measures if “things continue for longer or get worse,” said Bo Lingam.

“Your manager or HOD will explain this exercise to you in more detail,” he added. AAGB’s cost-cutting measures come at a time when the aviation industry not just AA but Malindo has also taking the necessary steps due to economic turbulence caused by the coronavirus outbreak, restricting cross-border travel.

Let’s buckle up and hope more of a good times will come soon!

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