Court orders AirAsia to pay RM268,620 to former pilot who quit after 75pc pay cut, despite company posting profits in 2021

Court orders AirAsia to pay RM268,620 to former pilot who quit after 75pc pay cut, despite company posting profits in 2021



The court rules that AirAsia reported profits in 2021 despite the pandemic, indicating that the furlough and pay reduction measures were not justifiable. — Picture by Firdaus Latif

Tuesday, 12 Nov 2024 10:15 AM MYT


KUALA LUMPUR, Nov 12 – The Industrial Court had reportedly directed AirAsia to pay RM268,620 in compensation and back wages to a former pilot, ruling that he was constructively dismissed from the low-cost carrier.

Free Malaysia Today reported that the court, chaired by S Vanithamany, issued the ruling last week in favour of former AirAsia pilot Eric Koh — awarding him RM232,320 for lost wages and RM36,300 as compensation.


Koh had joined the airline in July 2018 but resigned in 2022 after he was furloughed during the Covid-19 pandemic, a period when his salary was reduced by 75 per cent due to limited flights caused by border restrictions.

The pilot argued that the pay cut left him no choice but to resign, as his livelihood was severely impacted — but AirAsia countered that Koh had voluntarily chosen to resign.


“Looking at the facts at hand, it appears that the company had imposed these furloughs and unpaid salary schemes on [Koh] without his consent as he had no choice but to accept it due to a training bond he signed,” said Vanithamany.


“They also implemented the 75 per cent salary reduction on the claimant unlawfully,” she added, ruling that the airline was not entitled to cut more than 50 per cent of Koh’s salary without obtaining his consent.

“Koh’s contract did not mention anything about the number of times he should fly in a month in order to draw the basic salary,” she reportedly said, clarifying that only his allowances depended on flight frequency.

The court also observed that AirAsia reported profits in 2021 despite the pandemic, indicating that the furlough and pay reduction measures were not justifiable.

“Constructive dismissal” occurs when an employee resigns due to an employer’s behaviour, effectively forcing the employee to leave.

Koh was represented by lawyers Leow Ho Eng and Tiffany Chin, while Wendy Lam and Wong Jia Ee represented AirAsia.