AirAsia fails to overturn RM269,000 award to ex-pilot

The High Court has dismissed AirAsia's attempt to overturn a RM268,620 compensation and back wages award it received from an Industrial Court. Justice Azizan Arshad affirmed the 2024 decision in favor of former pilot Eric Koh, finding no basis for appeal regarding the legality or factual foundation of the tribunal's judgment. The court acknowledged the chairman's correct identification of the core issue, which concerned whether Koh was constructively dismissed due to AirAsia's actions and if those actions represented a fundamental breach of the employment contract.

Koh resigned in 2022 after being placed on furlough during the Covid-19 pandemic, with the airline cutting his basic salary by 75%, citing border restrictions that grounded flights. Koh argued that the pay reduction forced him to resign, as it jeopardized his livelihood. In contrast, AirAsia maintained that Koh left on his own accord.

The Industrial Court concluded that Koh was constructively dismissed and that the company had no right to deduct more than 50% of his salary without his consent, awarding him RM232,320 in back pay and RM36,300 in compensation for reinstatement. Koh's legal representatives were Leow Ho Eng, while AirAsia was represented by Wendy Lam and Wong Jia Ee. AirAsia has chosen to appeal the High Court's ruling.