AirAsia founders not taking salary, staff accepts up to 75% pay cut


Chief executive Tan Sri Tony Fernandes, in an Instagram post late Saturday, said the airline has retained all its staff. “We have never had a time like this before and we are doing our best, ” he said.

KUALA LUMPUR: The founders of AirAsia Group Bhd will give up their salaries, while its staff has agreed to take up to 75% pay cut as the budget airline grapples to manage the impact of the coronavirus pandemic.

Chief executive Tan Sri Tony Fernandes, in an Instagram post late Saturday, said the airline has retained all its staff.

“We have never had a time like this before and we are doing our best, ” he said.

The Covid-19 pandemic has wreak havoc across the industry as governments worldwide imposed strict travel restrictions to contain the spread of the deadly virus.

Fernandes, in his post, said he and executive chairman Datuk Kamarudin Meranun “will not be taking a salary during this period, ” while staff from across the business “have accepted temporary pay reductions” of between 15% and 75% depending on seniority.

“I thank them for their sacrifice and in keeping the big picture in mind, ” Fernandes said.

The low-cost carrier currently has “no revenue coming in” with 96% of its fleet grounded since end of March.

The company, he said, still have “significant ongoing financial commitments” such as fuel suppliers and leasing agents.

Fernandes said the airline is “doing everything possible” to reduce costs during this period.

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