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

The National Union of Flight Attendants Malaysia (Nufam) has called on AirAsia to avoid laying off staff as the low-cost carrier struggles with financial difficulties, primarily due to the rise in jet fuel prices stemming from the conflict in Iran. The union warns that cabin crew, pilots, engineers, and ground staff are often the first to experience pay cuts and reduced job security during financial troubles and corporate restructuring.

Nufam highlights that AirAsia has already cut several routes and reported substantial quarterly losses, which might result in workforce reductions.

The union contends that AirAsia should not resort to internal cost-cutting measures that jeopardize employee livelihoods; instead, it should seek more sustainable solutions for financial rescue and fundraising. Nufam urges the airline to keep employees informed about its plans and notifies them that they do not intend to conduct layoffs.

The union also appeals for public fairness and constructive dialogue about AirAsia's challenges, noting that millions have benefited from the airline via affordable fares and extensive connectivity.

AirAsia's co-founder, Tony Fernandes, recently denied that the airline was seeking a government bailout and stated that its operations are sustainable. He also clarified that AirAsia is not in need of US$3 billion in fresh capital, but rather US$1 billion to refinance existing loans and repay some creditors. Bloomberg reported that AirAsia has sold six newly delivered aircraft since the beginning of last year, including two in July, as a result of its financial predicament.

The low-cost carrier mentioned that selling aircraft without them being put into service is uncommon in the industry.