AirAsia founders not taking salary; staff accepts up to 75% pay cut

AirAsia founders not taking salary; staff accepts up to 75% pay cut

An AirAsia Airbus A320-200 prepares to land at Noi Bai international airport in Hanoi, Vietnam April 18, 2019. (Reuters file photo)
An AirAsia Airbus A320-200 prepares to land at Noi Bai international airport in Hanoi, Vietnam April 18, 2019. (Reuters file photo)

KUALA LUMPUR: The founders of Malaysia's AirAsia Group Bhd will not take salaries and its staff has agreed to an as much as 75% cut in pay due to the impact of the novel coronavirus outbreak on the airline, its chief executive said late on Saturday.

Tony Fernandes said in an Instagram post that he and Executive Chairman Kamarudin Meranun "will not be taking a salary during this period", while staff from across the business "have accepted temporary pay reductions of anywhere between 15-75%, depending on seniority, to share the impact this is having on our business".

The budget airline has no incoming revenue and 96% of its fleet is grounded, Fernandes said.

"We still have significant ongoing financial commitments such as fuel suppliers and leasing agents," he said.

The airline has retained all its staff.

AirAsia has also urged customers to accept credit offers for flights cancelled instead of refunds.

AirAsia has suspended most of its flights since March and its long-haul arm, AirAsia X Bhd, parked most of its aircraft at its Kuala Lumpur hub until May 31.

Do you like the content of this article?
COMMENT (16)

Shore erosion

Experts surveying shoreline erosion near the Mrigadayavan Palace in Phetchaburi have attributed the problem to the construction of shoreline stabilisation structures.

06:00

Major attraction

The government is floating an idea to make the 88-year-old Memorial Bridge, or Saphan Phut, into a new landmark for Bangkok to attract tourists from around the world.

05:07

Help for SMEs

A full meeting of economic ministers will be held on Friday to discuss ways to revitalise the economy battered by Covid-19, with measures to help SMEs high on the agenda.

05:00