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AirAsia Philippines to slash 12 pct of staff due to COVID-19 impact



Budget airline AirAsia Philippines on Friday announced its plan to layoff 12 percent of its workforce due to the travel restrictions triggered by the COVID-19 pandemic.

“Despite all our efforts to curb the effects of the pandemic, AirAsia has made the difficult decision of reducing the company’s workforce, but has done everything to keep the number of affected employees to a minimum, totaling 12 percent of all Filipino Allstars,” the airline said in a statement.

With about 2,200 employees, more than 260 employees “across the board” will be affected by the layoffs, the airline said.

“For years, we have been able to carry out our vision of letting everyone fly with the help of our Allstars. AirAsia values each and everyone’s contribution to the company and we thank them for their service,” the airline added.

Indeed, the aviation industry has been hit hard by the COVID-19 global pandemic. “AirAsia Philippines is not an exception to this,” the low-cost airline said.

The airline cited its cost management efforts to reduce losses brought by the pandemic such as the voluntary salary sacrifice, ranging from 100 percent at the very top to 15 percent, by the management and senior employees of AirAsia Group.

AirAsia Philippines, founded in 2010, is the latest Philippine carrier to downsize its workforce due to the pandemic. Philippine Airlines and Cebu Pacific Air have also laid off its employees.

The country’s flag carrier Philippine Airlines, Cebu Pacific Air, including AirAsia, issued advisories on Monday that they are resuming domestic flight services following the government’s move to ease quarantine restrictions to contain the spread of the COVID-19.

The lockdown imposed in mid-March restricted air, land and sea travel and suspended mass transportation in Metro Manila and many parts of the country after airports were shut down to avoid infection.


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