AirAsia boss Tony Fernandes confirms axed 10pc of staff in latest round of retrenchments
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AirAsia Group CEO Tony Fernandes answers queries after the media briefing on AirAsia Digital at NU Sentral, Kuala Lumpur September 24, 2020. — Picture by Shafwan Zaidon
KUALA LUMPUR, Oct 9 — Low-cost airline companies, AirAsia Bhd dan AirAsia X Bhd, have confirmed the retrenchment of 10 per cent of their 24,000 employees last week.
This confirmed a Bernama report on Sept 28 that AirAsia might be planning a new round of layoffs involving hundreds of its personnel for the continued survival in an industry severely affected by the Covid-19 crisis.
In an interview with Buletin Utama TV3 today, AirAsia Group chief executive officer Tan Sri Tony Fernandes said the move to terminate the services of the staff had to be undertaken given the reality of the aviation sector which was facing difficulty in recovering in the near future.
The aviation tycoon said the group was expected to operate on a smaller scale and AirAsia would try to rescue as many of its staff that had been laid off as possible.
"We are very motivated to win because we are very motivated to rehire and provide as many jobs as we can (for) the amazing staff that had done no fault of their own.
“AirAsia is all about its people. Whatever people want to say, we built a great company because of great people, 24,000 great people, and we lost some though it was through no fault of theirs. So my responsibility is to try to get the airline back (on its feet) and provide them other jobs,” he said.
In early June, AirAsia reduced more than 250 of its staff due to the Covid-19 pandemic.
In the interview, Fernandes also concurred with the government's approach of not saving any airline companies with any capital injection, but he said support in terms of borrowings for the critical sector was needed.
“The government has put in the Prihatin Rakyat Economic Stimulus package, which is good and enough for us. That is fair as it is not a bailout; that is a loan, and we have to pay back that loan.
“Anyone saying Prihatin is a bailout is wrong. Malaysia Airlines has a big shareholder, Khazanah Nasional Bhd. I think it is the right thing that (Finance Minister) Tengku Datuk Seri Zafrul Abdul Aziz said business must stand alone,” he said.
Fernandes clarified that assistance in the form of the first financing was expected to be received end of this month.
He acknowledged that AirAsia had sought for funding of RM2 billion to RM2.5 billion, mainly from local sources. — Bernama
This confirmed a Bernama report on Sept 28 that AirAsia might be planning a new round of layoffs involving hundreds of its personnel for the continued survival in an industry severely affected by the Covid-19 crisis.
In an interview with Buletin Utama TV3 today, AirAsia Group chief executive officer Tan Sri Tony Fernandes said the move to terminate the services of the staff had to be undertaken given the reality of the aviation sector which was facing difficulty in recovering in the near future.
The aviation tycoon said the group was expected to operate on a smaller scale and AirAsia would try to rescue as many of its staff that had been laid off as possible.
"We are very motivated to win because we are very motivated to rehire and provide as many jobs as we can (for) the amazing staff that had done no fault of their own.
“AirAsia is all about its people. Whatever people want to say, we built a great company because of great people, 24,000 great people, and we lost some though it was through no fault of theirs. So my responsibility is to try to get the airline back (on its feet) and provide them other jobs,” he said.
In early June, AirAsia reduced more than 250 of its staff due to the Covid-19 pandemic.
In the interview, Fernandes also concurred with the government's approach of not saving any airline companies with any capital injection, but he said support in terms of borrowings for the critical sector was needed.
“The government has put in the Prihatin Rakyat Economic Stimulus package, which is good and enough for us. That is fair as it is not a bailout; that is a loan, and we have to pay back that loan.
“Anyone saying Prihatin is a bailout is wrong. Malaysia Airlines has a big shareholder, Khazanah Nasional Bhd. I think it is the right thing that (Finance Minister) Tengku Datuk Seri Zafrul Abdul Aziz said business must stand alone,” he said.
Fernandes clarified that assistance in the form of the first financing was expected to be received end of this month.
He acknowledged that AirAsia had sought for funding of RM2 billion to RM2.5 billion, mainly from local sources. — Bernama
A couple of days ago on FB, I came across a post (can't remember whose) asking for, words to the effect, preference of likely prospects between AirAsia and MAS. The majority was for AirAsia with a disdainful sneer at MAS for probably waiting for a government's handout.
I warned of the different ideology between the two airlines, pointing out that AirAsia being a private business will probably retrench its staff, reduce this and that, etc in the way private companies do when faced with diminishing business. Ruthless cost-cutting, cold-hearted towards the staff but that's commercial business - the bottom-line rules. So I find the claim of AirAsia being about its people a bit of a (cruel) joke.
MAS on the other hand will try to retain its staff a la the public service, at most only resorting to 'natural attrition'.
Who is better, I leave that to you and the airlines' staff to make.
Amen.
MAS had been "rescued" many times by the government already, starting in the 90s during Toonsie/Daim's reign, the famous buy-in of MAS, then buy-back by the taxpayer.
ReplyDelete"I did it for National Service", cried Tajuddin Ramli, the then Golden Blue-Eyed Boy.
Then came the equally infamous "unbundling, asset-lite, airline with no planes model", hocus-pocus "now you see it (the hutang) now you don't" magic by Roti Jala. Which didn't work of course, because the root-causes were still there. Like the very generous catering contract which went to a VVIP's company.
Affirmative Action? But by then Toonsie wasn't the PM.
Then came the privatization, with a massive injection of taxpayer's money from Khazanah. But the root problems were still there. And again Toonsie was no longer PM.
But as far as KT is concerned, only the 90's scandals matter and needs to be highlighted over and over and over and over again, because Toonsie was in charge then. Badawi and Jibby's reigns over MAS were equally disastrous but no need to mention.
KT also forgets to mention the Transport Ministers during the 80's 90s and 00's and 01's were all held by MCA.....Lee San Choon, Chong Hon Nyan, Ling Liong Sik, Chan Kong Choy, Ong Tee Keat, Kong Cho Ha, Liow Tiong Lai. During their time MAS was mismanaged, raped, pillaged and plundered. But bagi PKFZ and TARUC matching grant to MCA and they keep quiet.
The other day the Twit-of-a-Twat-Wet-Behind-The Ears Finance Minister Tengku Zafrul "bravely" declared on BFM Radio:
"I Never Said The Government Will Rescue MAS. This Decision Rests Entirely With The Board of Khazanah"
But the coward forgets to mention that the Chairman of Khazanah's Board is his Bossku The PM Muhyiddin, and he as the FM is the leading Director, as well as Azmin Ali.
So this is like using Capt Thaya-Pandai's circular logic.
"As FM, I won't liquidate and sack everyone in MAS, but as Director of Khazanah I may do that"
Sweet, let's blame Toonsie again shall we?
Air Asia is proposing its RM63.5 BILLION debt be restructured to RM200 MILLION. They are asking creditors to take 1 sen for every ringgit they are owed.
ReplyDeleteFat Chance.
If Malaysia needs an airline unfortunately MAS is the cheaper one to bail out. Sorry Tony.
BTW, the Transport Minister is Wee KHAT Siong, who has been deafeningly quiet, as was the long list of MCA Transport Ministers since the 80's when MAS was being mismanaged, raped, pillaged and plundered.
https://www.freemalaysiatoday.com/category/nation/2020/10/07/airasia-x-to-stave-off-liquidation-with-rm63-5-bil-debt-restructure/
KT's QUOTE:
ReplyDeleteMAS on the other hand will try to retain its staff a la the public service, at most only resorting to 'natural attrition'.
UNQUOTE
The operative word is "try"...ha ha ha...did they "try" harder than Air Asia?
https://www.thestar.com.my/business/business-news/2015/03/20/termination-letters-for-6000-malaysia-airlines-staff-on-june-1
https://www.nst.com.my/business/2020/03/574060/malaysia-airlines-offers-unpaid-leave-13000-employees
Unpaid leave...? Ha ha ha that is the precursor to retrenchment later.
Wee K(H)A(T) Siong, the Transport Minister is still silent over this, like for KHAT issue.....
ReplyDeleteGot No Say? Boh Lam Phar? Main Sudah Aku Punya...?
Duit PKFZ dan TARUC Matching Grant Sudah MCA Punya....?
The boss of AirAsia should open their palms to the evangelical American business leaders to lend them the money. American treasury is always printing money to help the big businesses.
ReplyDeleteIn normal times , Air Asia is actually well regarded as a good workplace.
ReplyDeletePressure to perform, for sure, but good teamwork, motivation, respect for people.
In the current pandemic, no choice, severe financial actions need to be taken
aa give poor guy like me an opportunity to fly many times in a year, mas no, mas cater for the rich n privilege, in this sense, mas is not really a public transport or public services. shd have pack long time ago.
ReplyDeletethat said, i think the way tony reward the shareholder with fat dividend selling it asset indicate they can be like any other blood sucker.
Why didn't u mfers quote yr (in)famous don't-spook-the-melayu-sensitivities here?
ReplyDeleteMAS is a gajibuta breeding group for many of the melayu. Letting it drown in the financial cesspool would put many of those leeches die standing while crying the lost of their god given manna.
AA is a private enterprise, where the principle of free market orientation dictates her business operations.
Unless, u mfers have, again, a different interpretation of yr alter-chanted laissez faire demoNcratic doctrine!
Consistency?
My foot!
is aa really private n oriented in a free market? can u get a same license n start a bb?
DeleteAsk that question to ALL the private & free market orientated companies in the world!
DeleteMaybe only in yr fart filled well, u find what u meant by private & free market orientated companies.
listing means not private, there is limit on license issued means not totally free. my view is basing on worldwide characteristic, ccp kharacteristics one i dun know.
DeleteOf course lah, substantiated with yr南魔萬England!
DeleteDo selectively fart!
In yr fart filled well, private & free market orientated companies r one the same, right?
The most successful current economic construct is Capitalism with CCP characteristics.
ReplyDeleteExpect this to become the dominant economic structure in the next 100 years.
No!
DeleteSocialism with Chinese characteristics is the most vibrant sopo economic contruct in the world.
It's not exportable!