The founders of AirAsia have agreed that they will not be taking any salary, and its staff has agreed to take up to 75% pay cut due to the impact caused by COVID-19 on the airline, the chief executive officer, Tony Fernandes stated on Saturday.
Tony posted on Instagram that he and Executive Chairman, Kamarudin Meranun will not be taking a salary during this period of Coronavirus while the staff of the airline has accepted a temporary pay cut of anywhere between 15% to 75% depending on their seniority, in order to share the impact of COVID-19 on the business.
96% of AirAsia’s fleet is grounded, and the budget of the airline has no incoming revenue, Tony added.
“We still have significant ongoing financial commitments such as fuel suppliers and leasing agents,” Tony said. It is worth noting that the airline has retained all its staff.
They have also urged their customers not to ask for refunds and accept credit offers for the flights that were canceled. Most of their flights have been suspended since March, and AirAsia X Bhd, its long-haul arm, has most of its aircraft parked at Kuala Lumpur hub until at least May 31, 2020.