Philippines AirAsia to retrench 12 percent of workforce—report

Aviation Updates Philippines – Not anyone is immune to COVID-19, not even airlines.

The Philippine-unit of multinational airline AirAsia said it would reduce its 2,200-strong workforce by 12 percent, or about 260 employees, as the pandemic continues to ravage the airline’s operations. The airline had to cancel all domestic and international flights for more than two months.

According to a report from the Inquirer.net, Philippines AirAsia, in a statement, said it has “made the difficult decision of reducing the company’s workforce.” This, after the company underwent cash-preserving and cost-cutting measures for survival.

The job cuts will be “across the board” ranging from administrative staff to and cabin crew members, the report says. The company said it had done its best to keep the reductions at a minimum amid efforts to curb the pandemic’s effects.

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.”

Last April, the company’s senior management took unpaid leave as the company reduced its operating budget to about half. 

Aside from AirAsia, Philippine Airlines also sacked at least 300 jobs while Cebu Pacific laid off 150 cabin crew members during the early stages of the pandemic. The Philippine aviation industry has suffered significantly over the months, starting with the Taal volcano eruption in January.