Don’t lay off staff to cut costs, union urges AirAsia

The National Union of Flight Attendants Malaysia (Nufam) has urged AirAsia not to lay off staff amid financial strains faced by the low-cost carrier, largely caused by soaring jet fuel prices resulting from the Iran war.

The union said cabin crew, pilots, engineers and ground staff are often the first to face pay cuts or reduced job security during times of financial difficulties and corporate restructuring.

It pointed out that AirAsia has suspended several routes and reported significant quarterly losses, which could lead to a trimming down of its workforce.

“While AirAsia is trying to navigate these challenging economic landscapes due to soaring jet fuel prices and the Middle East war, Nufam firmly asserts that the airline’s workforce must not bear the brunt of these fiscal strains.

“Instead of leaning on internal cost-cutting measures that threaten employee livelihoods, it is time AirAsia looked for better ways to manage this crisis, including more sustainable financial rescue and fundraising plans,” it said in a statement.

Nufam urged the airline to continue updating employees on its plans, saying its workers want an assurance that no layoffs would be conducted.

It also urged the public to be fair and constructive in their comments on AirAsia’s struggles, saying that millions have benefitted from the airline through cheaper airfares and unprecedented connectivity.

“AirAsia remains a vital national asset and a cornerstone of Malaysia’s tourism and transport sectors,” it said.

Yesterday, AirAsia Group Bhd co-founder Tony Fernandes denied that the airline was seeking a government bailout and said its operations remained sustainable.

Fernandes also said AirAsia was not seeking US$3 billion in fresh capital, and that the airline was seeking US$1 billion to refinance existing loans and repay some creditors instead.

Bloomberg reported yesterday the low-cost carrier had sold six newly delivered aircraft since the start of last year, including two in July, because of its financial situation.

It said it was unconventional for airlines to sell aircraft without ever putting them into service.