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Tag: travel

  • China sets dates for reinstatement of tourist visas to Macau

    China sets dates for reinstatement of tourist visas to Macau

    @Macau, the world’s biggest casino hub, is set to welcome an influx of gamblers after China announced that tourist visas would be reinstated for all provinces.

    Residents from Zhuhai city across the border from Macau are permitted from tomorrow, August 12.

    Residents from the neighboring coastal province of Guangdong on the mainland will be able to apply from August 26, the National Immigration Administration said.

    Residents of other provinces will be allowed to apply for visas from September 23.

    Casino executives and investors have been eagerly awaiting the announcement as a catalyst to reviving gaming revenue, which has slumped since February due to coronavirus travel restrictions.

    China’s National Immigration Administration said, provided the domestic coronavirus situation continued to improve, residents would be able to apply for individual and group travel visas to enter the special administrative region located on the country’s southern coast.

    Visitors from greater China make up over 90 percent of tourists to the former Portuguese colony of Macau.

    Shares of Hong Kong listed casino stocks soared on Tuesday following the announcement. The announcement comes nearly a month after China loosened coronavirus-related border restrictions between Macau and Guangdong.

  • Cebu Pacific sends 14 planes for storage

    Cebu Pacific sends 14 planes for storage

    Budget carrier Cebu Pacific has now sent a total of 14 aircraft for storage at Alice Springs in Australia, with more possibly eyed as travel demand is not expected to return to its robust state anytime soon.

    On top of the 14 aircraft that have been sent so far, Cebu Pacific spokesperson Charo Logarta Lagamon said the next batch is still under study.

    “We have a fleet of 75 aircraft. Because costs continue to be challenged, we have sent aircraft to Alice Springs along with many other airlines, and we are looking to send additional aircraft there for additional storage because obviously we do not see demand coming back in the immediate future,” Lagamon, who is set to leave the airline effective Aug. 15, said yesterday.

    “We will have to store these aircraft in a more proper setting and in a cost-efficient manner,” she said.

    As part of its cost mitigation measures, Cebu Pacific last month said it sent nine aircraft to the Asia Pacific Aircraft Storage at Alice Springs for storage.

    “The best place to store aircraft is somewhere that is dry. This is a facility that stores aircraft because we need to make sure that it stores in a facility that will minimize damage or be equipped for storing aircraft so that once the demand comes back we can easily bring the aircraft back into the line,” Cebu Pacific vice president for marketing and customer experience Candice Iyog earlier said.

    Meanwhile, Lagamon said Cebu Pacific management and their counterparts in Airbus are currently in discussions on the adjustment in delivery or possible cancellation of some of the company’s aircraft orders given the impact of the COVID-19 pandemic to the aviation industry.

    “This is subject to discussions with Airbus. But again, it’s not only Cebu Pacific that is the only carrier in the world that is in talks with the manufacturers for the delay or adjustment of delivery schedules of these orders,” she said.

    Quoting Cebu Pacific president and CEO Lance Gokongwei, Lagamon said the airline is expecting challenging numbers in its second-quarter financial results.

    “This is on account of the course of continuing quarantine. We are still unable to fly the majority of our flights. We’re only at 10 percent of what our capacity used to be,” she said.

    Lagamon said Cebu Pacific has canceled some 150 flights a week, or a total of about 300 flights, from Aug. 4 to Aug. 18 following the return of Metro Manila to modified enhanced community quarantine.

    Cebu Pacific incurred a P1.18 billion net loss in the first quarter, a turnaround from the P3.36 billion net income it recorded in the same period last year, as travel restrictions brought about by the COVID-19 pandemic started taking its toll on its operations.

  • Cebu Pacific to refund tickets of 1.5M passengers

    Cebu Pacific to refund tickets of 1.5M passengers

    Budget carrier Cebu Pacific will provide refunds to an estimated 1.5 million passengers as 50 percent of its fleet remains grounded due to the coronavirus pandemic.

    Charo Logarta Lagamon, corporate communications director for Cebu Pacific Air, assured that passengers who requested refunds since April or earlier will be refunded by August.

    “All of a sudden, we have a situation where hundreds of thousands of passengers are all clamoring for a refund in a 160-day time frame. It’s not that simple to refund, especially now that there’s no cash flow in the airline. Nothing is going in and everything is going out,” she said in a Zoom meeting Friday, Aug. 7.

    Lagamon said they are doing their best to fast-track the process and that there are reforms underway to help in the refund process.

    She said the airline will reimburse payments made through credit or debit card while for those who paid in cash, the refund will be deposited in the bank account of the customer.

    Moreover, to stay afloat during these challenging times, the airline also implemented cost-cutting measures like the layoffs of 800 employees, which is 20 percent of the airline’s 4,000 employees.

    Company officials also had pay cuts.

    “Our second-quarter performance was very challenged due to the prolonged Covid-19 situation,” she said.

    Meanwhile, Cebu Pacific placed 14 of its 76 aircraft in long-term storage in Alice Springs, Australia to preserve the airline’s condition. Others were parked in the different hubs in the country.

  • Financial aid for AirAsia crucial due to high multiplier effect

    Financial aid for AirAsia crucial due to high multiplier effect

    Financial assistance such as loans with easier terms to AirAsia Group is crucial in helping the struggling low-cost carrier to turn around as its recovery will bring about a huge spillover effect to the broader economy.

    AirAsia X  chairman Tan Sri Rafidah Aziz reportedly said easier loan terms will not only provide the carrier with operating funds but also create a high multiplier effect in boosting and reviving the country’s economy.

    She was quoted by Utusan Online as saying AirAsia is negotiating for bank loans with low-interest rates and longer tenures.

    “We have a multiplier effect from flights which is 12 times, with every RM1 we bring in, another RM12 given to (economic) sectors such as hotels, resorts and restaurants, ” Rafidah was quoted as saying in the report.

    She said countries understand, when the aviation industry opens, business people and tourists will come, so hotels and restaurants will resume operations and receive visitors

    According to Rafidah, support and financial assistance is needed by the airlines affected by the enforcement of the Movement Control Order (MCO) to curb the Covid-19 pandemic.

    She noted that no income is earned during the MCO period because flights in and out of the country are stopped while expenses continue to be incurred.

    Rafidah said the Covid-19 pandemic situation has not stopped AirAsia from continuing to find new flight destinations.

    However, she said, various aspects need to be looked at first including the number of visitors and fuel prices.

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  • AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia aiming to launch Muslim-friendly services including packages to perform Haj and Umrah

    AirAsia Group Bhd is aiming to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    In the low-cost carrier’s management discussion and analysis in its Annual & Corporate Governance Report 2019 released July 29, AirAsia co-founder and group CEO Tan Sri Tony Fernandes said the airline was actively assessing the prospects of a number of products that cater to niche travel.

    “For example, we aim to launch Muslim-friendly services including packages to perform the Haj and Umrah.

    “We are also looking to enter the medical tourism space, a rapidly growing segment where we would be able to provide the full complement of visas, travel, accommodation, and insurance,” he said.

    He said the idea was to provide complete end-to-end services and experiences for travelers, who only need to search and click for what they want on their mobiles or laptops.

    Fernandes said while AirAsia adhered to its low-cost model to be able to grow our network and offer an ever-increasing range of exciting destinations for guests, it was not able to fully cushion itself from the vagaries of the operating environment.

    “Natural disasters, viral outbreaks, economic downturns, geopolitical upheavals – all of these can, and do impact travel,” he said.

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  • Budget airline AirAsia’s future in ‘significant doubt’

    Budget airline AirAsia’s future in ‘significant doubt’

    The future of Asia’s biggest budget airline, AirAsia, is in “significant doubt”, auditor Ernst & Young has said. Shares in the Malaysian-based airline fell by more than 17% on Wednesday after being halted earlier in the day.

    The airline’s founder and chief executive is tycoon Tony Fernandes, who also co-owns Queens Park Rangers (QPR) football club in the UK.

    The world’s airlines have been hit hard by the sharp fall in passengers due to strict coronavirus travel restrictions.

    Ernst & Young highlighted the airline’s huge debts in a statement to the Kuala Lumpur stock exchange late on Tuesday.

    It said AirAsia’s current liabilities already exceeded its current assets by 1.84bn ringgit ($430m; £340m) at the end of 2019, before the start of the pandemic.

    The Asian carrier’s financial performance and cash flow have been further hit by the grounding of its planes amid tight travel curbs and lockdowns.

    This slump and AirAsia’s financial performance “indicate the existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern,” Ernst & Young said in its unqualified audit opinion statement.

    On Monday, AirAsia reported a record quarterly loss of 803.8m ringgit. The budget airline started suspending flights in late March.

    “This is by far the biggest challenge we have faced since we began in 2001,” Mr Fernandes said in a statement.

    “Every crisis is an obstacle to overcome, and we have restructured the group into a leaner and tighter ship.”

    “We are positive in the strides we have made in bringing cash expenses down by at least 50% this year, and this will make us even stronger as the leading low-cost carrier in the region,” he added.

    AirAsia said it was in talks over joint ventures and collaborations that may result in additional investment. It has also applied for bank loans and is weighing proposals to raise additional capital.

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  • Vietnam Airlines wants $500 mln government bailout

    Vietnam Airlines wants $500 mln government bailout

    Vietnam Airlines is seeking an urgent VND12 trillion ($518 million) bailout from the government as the coronavirus continues to hit its revenues. It is likely to report a loss of VND13 trillion ($561 million) this year, with revenues falling by half from last year to around VND50 trillion ($2.2 billion), CEO Duong Tri Thanh said at a meeting on Monday.

    It has stopped all regular international flights since April when it operated only four domestic flights a day on average.

    In June the number of passengers rose to 84 percent of the number a year earlier. “Since 1975 there have never been fewer flights in Vietnam’s skies,” he said, referring to the year the Vietnam War ended.

    He expected the domestic market to recover to pre-pandemic levels only by the end of 2021, and the international market a year later.

    Government advisors said at the meeting that other options to rescue the airline include issuing more shares to existing shareholders or allowing investment by sovereign fund State Capital Investment Corporation.

    One of them, Nguyen Dinh Cung, said many other governments have bailed out airlines and Vietnam should do the same.

    Thanh said Vietnam Airlines has taken up the issue of funding with All Nippon Airways, which owns an 8.6 percent stake in it, but since the Japanese carrier is also in trouble it cannot provide loans now.

    In Vietnam, the aviation industry has been among the hardest hit by the coronavirus pandemic. Airlines served 14.6 million passengers in the first six months, down 46 percent year-on-year, according to the General Statistics Office.

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  • Thai Vietjet offers super-saver fares from THB50 for all 13 routes in Thailand

    Thai Vietjet offers super-saver fares from THB50 for all 13 routes in Thailand

    In celebration of its new routes in Thailand, Vietjet has kicked off a special promotion offering 500,00 air tickets priced from THB 50 (*) (USD 1.5) starting from now to 17 July 2020 during the golden hours of 1.00pm to 3.00pm (Malaysian time).

    Here’s your chance to plan ahead for a perfect Thailand trip! The promotional tickets are applicable on all of its 13 domestic routes in Thailand and valid for travel between 1 September 2020 to 30 June 2021 (**). Tickets can be booked via Vietjet’s website and mobile application Vietjet Air.

    “We are happy to bring in more flying opportunities for the people to discover the “Smiling Land” with amazing experiences. This is a perfect chance for Thai people to go on a tour within Thailand with their families and friends. We are committed to expanding flight network in domestic Thailand and continuously provide exciting experiences to our passengers with daily promotion program”, said Vietjet Vice President, Nguyen Thi Thuy Binh.

    The recently announced six new Thailand routes expand Thai Vietjet’s domestic routes to 13, allowing tourists to travel conveniently around the country. This super promotion is applicable to all Thai Vietjet’s domestic routes in Thailand from Bangkok (Suvarnabhumi) to Chiang Mai, Chiang Rai, Phuket, Krabi, Udon Thani, Phuket – Chiang Rai, and Udon Thani – Chiang Rai, including new routes from Bangkok (Suvarnabhumi) to Hat Yai, Khon Kaen, Nakhon Si Thammarat, Ubon Ratchathani (starting from 6 October 2020),  Surat Thani (starting from 4 November 2020), Chiang Rai – Hat Yai  (starting from 1 November 2020).

    Currently, Vietjet is operating a stable domestic network in Vietnam and Thailand. All Vietjet’s flights are in alignment with all global standards and guidelines from the local authorities, including aircraft disinfection.

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  • Bamboo Airways banks on Con Dao Island flights

    Bamboo Airways banks on Con Dao Island flights

    Bamboo Airways plans to launch regular flights to Con Dao Island, a tourism hotspot in southern Ba Ria-Vung Tau Province, starting August 1.

    The airline is waiting for Civil Aviation Authority of Vietnam (CAAV) approval to fly to the 16-island archipelago, according to a company spokesperson.

    It plans to operate flights from the northern and central region using four twin-engine Embraer jets holding up to 120 seats.

    Currently, Vietnam Air Services Company (VASCO), a subsidiary of Vietnam Airlines, is the only airline operating regular flights to the islands from Ho Chi Minh City and the southern city of Can Tho using the ATR 72 short-haul aircraft that could carry up to 78 passengers.

    Con Dao Airport has a 3C classification, meaning it can only receive ATR 72 aircraft or equivalent. It functions for 12 hours a day and closes at night since it has no runway lighting system.

    Property developer FLC, the parent company of Bamboo Airways, earlier proposed to invest in a lighting system so the airport could operate at night.

    A 4C upgrade is planned for the airport by 2030 so that it could receive Airbus A319 jets carrying up to 156 passengers.

    Budget airline Vietjet had made a similar request in 2018 to operate flights to Con Dao with the same aircraft model but is still awaiting approval.

    Ba Ria-Vung Tau Province received 15.5 million tourists in 2019, up 15.2 percent year-on-year. A total of 500,000 were foreigners.

  • AirAsia to lay off 30% of workforce

    AirAsia to lay off 30% of workforce

    AirAsia India is expected to let go of several of its employees as its part-owner, AirAsiaBerhad struggles to maintain its group operations across regions following the outbreak of coronavirus.

    AirAsia Berhad is set to reduce up to 30 percent of its workforce across regions including its Indian operations which it part-owns with Tata Sons as the group struggles to maintain its operations following the Covid-19 outbreak.

    Sources in the airline said that apart from salary reduction up to 75 percent, the group is seriously considering plans to let go between 25 percent and 30 percent of its entire workforce of about 20,000 across regions.

    An AirAsia India spokesperson, however, declined to comment on the possible measures being taken to retrench employees. As of December 2019, AirAsia India had a market share of 7 percent. It has a total fleet size of 30 aircraft and flies to 21 destinations across India.

    The airline sector is one of the most-affected industries since the outbreak of coronavirus across the countries. According to the airline consultancy firm CAPA, most airlines in the world could file for bankruptcy soon. “As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.”

    As far as the airlines operating in India are concerned, CAPA said they are expected to incur a total loss of $3.6 billion during the first quarter of the current financial year. Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full, it said.

    Surprisingly, AirAsia India recently received its board’s clearance for increasing its borrowing limit by ₹1,000 crore to ensure it continues to pay leasing and parking charges for its grounded aircraft. AirAsia India is learned to be the first domestic airline to formally increase the borrowing limit. The decision to increase the limit from ₹500 crore to ₹1,500 crore was taken at a meeting of the shareholders in April.

    AirAsia India is a joint venture between Tata Sons, which owns 51 percent in the airline, and AirAsia Berhad. The special resolution was approved to carry out “existing and future financial requirements to support its business operations”

    AirAsia India, which has been struggling since it began its operations in June 2014, recorded a fourth-quarter net loss of ₹123.3 crore in FY19, which was 26 percent lesser than the same quarter in the previous year. It recorded revenues of ₹1,057.6 crore, a 65 percent increase from Q4 of FY18 on the back of a 38 percent increase in capacity, and a 19 percent increase in average fare.

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  • TAT joins AirAsia to stimulating domestic tourism with new aviation safety standards

    TAT joins AirAsia to stimulating domestic tourism with new aviation safety standards

    The Tourism Authority of Thailand (TAT) joined Thai AirAsia for a special activity taking place on the Bangkok-Krabi route on 29-30 June 2020, aimed at rebuilding confidence and revitalizing domestic tourism. This was done by bringing together medical workers, tourists, business operators, and the media in a trip showcasing the readiness of airline, venues, travel destinations, hotels, and restaurants, to provide safe and hygienic service.

    Governor of TAT, Yuthasak Supasorn, pointed out that domestic travel will be an important mechanism to jumpstart the economy at both the local and national levels, adding that this event will highlight traveling under the new normal, which focuses on adherence to healthcare advice, encouraging travelers and businesses alike to adapt and rehabilitate tourism.

    The TAT’s goal for this activity is supporting domestic tourism and promoting awareness of various safety practices for traveling, visiting sites, and staying in accommodation so that travelers can prepare accordingly.  The authority assures that measures being promoted are straightforward and that everyone will be able to travel conveniently in the new normal.

    Representatives from different sectors were invited to join in the activity, including medical professionals, travel companies and travel groups, all given the opportunity to experience present-day tourism using the concept “BEST, wherein B: Booking – covers before, during and after travel planning, travel companions, pre-booking and social distancing; E: Environment – covers environmental conservation and social responsibility; S: Safety – covers information for decision making as well as health and hygiene and T: Technology – incorporating the use of technology to facilitate contactless tourism and greater physical distancing.

    CEO of Thai AirAsia, Santisuk Klongchaiya remarked that travel and domestic spending in the nation is crucial at this time to stimulate the economy and tourism sector, affirming AirAsia’s support for TAT.

    From July onward, the airline will be resuming service to all 23 of its domestic destinations, including regional connections Chiang Mai-Hat Yai, Chiang Mai-Pattaya (U-Tapao), Hat Yai-Pattaya (U-Tapao) and Khon Kaen-Hat Yai for a total 25 routes, flying 68 return trips a day in support of travel and business.

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  • AirAsia Sold A Record-Breaking 41,000 Seats In One Day Last Week

    AirAsia Sold A Record-Breaking 41,000 Seats In One Day Last Week

    On Tuesday, low-cost carrier AirAsia sold a record-breaking 41,000 seats in just one day. This marks AirAsia’s highest post-hibernation sale day since it resumed domestic flight services in May.

    The official site hit an overall traffic growth of 170%. By the looks of it, the number will only increase going forward. Passengers are eager to fly again – whether to reunite with loved ones, for business purposes or just to travel.

    “We are encouraged by this positive trend, and we foresee this will continue in the coming weeks,” CEO Tan Sri Tony Fernandes said in a statement sent to Simple Flying.

    According to a statement sent to Simple Flying, the most popular destinations booked on June 23rd were for the following routes:

    • Malaysia: From Kota Kinabalu and Kuching to Kuala Lumpur
    • Thailand: From Bangkok to Chiang Mai and Hat Yai
    • Indonesia: From Jakarta to Denpasar and Medan
    • Philippines: From Manila to Puerto Princesa and Davao
    • India: From Delhi to Srinagar and from Bengaluru to Hyderabad

    In Malaysia, the Recovery Movement Control Order (RMCO) began on June 10th. The RMCO allows for the resumption of domestic travel. As such, all interstate travel has picked up since. AirAsia also introduced an ‘Unlimited Pass’ for those traveling within the state. Additionally, there is a 20% sale on all domestic flights in Malaysia, which undeniably led to the airline’s highest load factor post-hibernation.

    AirAsia’s flight ticket sales are picking up as more countries resume domestic travel. Photo: Getty Images

    AirAsia Group’s load factor hit 50%, with AirAsia Malaysia reaching a whopping 70%. Fernandes added,

    The airline has also focused on enhancing its safety and cleaning measures. On top of compulsory masks and social distancing measures, all cabin crew will don personal protective equipment (PPE) and wear masks and gloves. Cleaning measures are completed regularly for each aircraft.

    Specifically for AirAsia Philippines, cabin crew must wear a newly designed PPE in AirAsia colors – complete with a face shield, mask, and gloves.

    AirAsia introduced end-to-end contactless journeys for customers in May. With minimal contact needed, the airline hopes to keep its passengers’ minds at ease while going through the boarding and check-in process.

    These initiatives began on May 13th and included contactless payments at the airport, a Passenger Reconciliation System (PRS) for digitized boarding passes, and enhanced features to its mobile app.

    It seems that the Malaysian-based carrier handled the COVID-19 situation relatively well. Although it had to ground 96% of its fleet and halt Airbus deliveries, the airline has succeeded in enticing passengers with new promotions.

    Furthermore, the airline implemented initiatives targeted at helping vulnerable communities amid the virus outbreak. Earlier this month, the airline gave away 50,000 tickets to frontline workers and doctors.

    AirAsia’s uptick in sales shows that there is indeed a demand for domestic travel. Fernandes mentions the airline will increase its flight schedule to 50% of its pre-pandemic operations in the next few weeks.

    “Currently, we are operating 152 daily flights across the region. We look forward to the reopening of international borders in recognition of the fact that air transport provides the connectivity that is essential for the resumption of economic activities and the global recovery efforts”, he added.

    Once international borders reopen, there is no doubt the carrier will continue to have its sales numbers increase.

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  • AirAsia to increase frequency for Langkawi, Kuching and Penang

    AirAsia to increase frequency for Langkawi, Kuching and Penang

    Low-cost airline AirAsia Bhd will increase flight frequencies for its most sought after routes during the Recovery Movement Control Order (RMCO) period including Langkawi, Kota Kinabalu, Kuching and Penang.

    Chief executive officer Riad Asmat said the routes are from Kuala Lumpur to Langkawi, Kuching and Kota Kinabalu, as well as from Johor Bahru to Kuching and Penang. However, the number of add-on flights for July would be announced later, he said.

    “Since the resumption of our flights post-hibernation mode, we are witnessing encouraging demand for domestic travel.

    “We will continue to monitor demand and hope to gradually increase the frequencies from our other hubs such as Kota Kinabalu, Kuching, and Penang in the near future,” he said.

    Other AirAsia’s domestic destinations are Alor Setar, Ipoh, Kota Bharu, Kuala Terengganu, Miri, Bintulu, Sibu, Sandakan, Tawau and Labuan.

    Commenting on in-flight safety measures, Riad said it was paramount for AirAsia to continuously educate travellers about safe flying to build their confidence to start travelling again.

    Hence, the airline has implemented various measures throughout different flight phases such as temperature screenings, limited hand-carry item, face mask usage, end-to-end contactless procedures, proper hygiene standards and inflight medical training for cabin crew.

    According to IATA, evidence suggests the risk of Covid-19 transmission on board is extremely low as aircraft are equipped with features that will reduce the already-low risk of transmission onboard.

    Passengers are seated facing forward with the seatback serving as a solid barrier, while the cabin air is fully filtered and renewed every 2-3 minutes through the hospital-grade high-efficiency particulate air (HEPA) filters, ensuring clean cabin air.

    Coupled with a layered approach of biosafety measures covering the entire passenger journey, the risk of transmission onboard is further minimised.

    “With continuous information provided to our guests, we believe this will help to build the confidence of our travellers to start flying again,” he said.

    With regard to international destinations, Riad said AirAsia would begin operations once the situation improves and governments lift borders and travel restrictions.

    Asked on AirAsia’s focus in the next five to six months, he said the airline would continue with the diversification of its revenue base during this situation, with a more rigorous and market-friendly approach to further expand its digital and ancillary businesses such as Santan, Teleport and BigPay.

    Aside from that, AirAsia would also focus on supporting government initiatives to promote local tourism together, he said.

    AirAsia, which was named the World’s Best Low-Cost Airline for 11th consecutive time at the Skytrax World Airline Awards 2019, has recently extended the sale of its Unlimited Pass Cuti-Cuti Malaysia due to the overwhelming demand.

    Since its launch on June 11, over 40,000 flights have been redeemed with the first flight redemption taking place only seven minutes after the pass went on sale.

    On Thursday, AirAsia announced its partnership with local hotels to offer hassle-free, best price guaranteed deals with bigger savings on SNAP, its new flight+hotel combo booking platform.

    SNAP leverages the airline’s extensive network of over 160 destinations, with many being unique and exclusive routes, to provide the best price for flights, while working directly with hotel partners to offer best value room deals.

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  • AirAsia launches three-day sale for domestic flights

    AirAsia launches three-day sale for domestic flights

    AirAsia Group Bhd, which resumed its domestic flights on April 29, has launched a three-day sale for domestic flights booked through airasia.com and its mobile app from today to Sunday.

    During the sale, AirAsia BIG members can enjoy all-in one-way fares from as low as RM129 for domestic travels between July 1 and Nov 19, while non-members’ fares start from RM134.

    In a statement, Amanda Woo, head of the commercial for AirAsia, said passengers can now perform an unlimited number of date changes to their flights with the recent announcement of flight change fee waiver for all new bookings with travels up to Dec 31.

    She added that since the resumption of its domestic services, AirAsia has enhanced its safety measures throughout the entire flying journey, including pre-flight, in-flight, and arrival processes.

    Several contactless procedures including contactless payments at the airport, contactless kiosks, passenger reconciliation system, as well as enhanced features on AirAsia mobile app are also in place to ensure a smooth and safe travel experience for all AirAsia’s guests.

  • AirAsia to slash workforce by at least 30%

    AirAsia to slash workforce by at least 30%

    Southeast Asia’s biggest low-cost carrier AirAsia Group is set to reduce its workforce by up to 30% as founder Tony Fernandes considers selling a 10% stake in the airline to raise cash. Desperately trying to stave off a cash flow crisis triggered by the coronavirus pandemic which has decimated the region’s travel and tourism industry, AirAsia will also slash remaining staff salaries by up to 75% in an attempt the save the airline, the Nikkei Asian Review has learned.

    The retrenchment will include cutting 60% of AirAsia’s cabin crew and pilots for both AirAsia and its medium-haul affiliate AirAsia X. AirAsia Group operates through Malaysia, Thailand, Indonesia, Japan, India and the Philippines.

    Almost all of the company’s 20,000 employees have been individually re-evaluated since January based on salary scale and performance, with the lay-off expected to continue through to the end of July.

    Multiple sources have told Nikkei that the airline — in which Fernandes continues to hold a majority stake — may also sell 10% of the company’s paid-up shares to raise cash, with South Korea’s SK Corp reportedly leading a trio of multinationals expressing interest.

    The share sale would not require shareholder approval as management has already been mandated to increase the number of new shares by up to 10% at a shareholders meeting last June. Korea’s third-largest conglomerate SK Corp could subscribe to new AirAsia shares of 1 Ringgit each, raising approximately $78.4 million for the airline. SK Corp, which has a major presence in the energy and telecommunications industries via its 95 subsidiaries, registered revenue of $213.6 billion last year and is backed by to $257.9 billion worth of assets.

    “All the proposals are being deliberated by the Board of Directors, with a decision can be expected as soon as next week,” a source said.

    While remaining employees are asked to take pay cuts ranging between 15%-75%, Fernandes has also slashed AirAsia’s capital expenditure and the working capital of all the group’s operating airlines. Fernandes and the airline’s co-founder Kamarudin Meranun have also agreed to draw no salary for the medium term.

    “Budgets for departments have been slashed while the salary cuts are expected to last until the end of next year,” the source said. “AirAsia only expects the situation to improve in 2022.”

    Employee benefits, which include free and discounted flights and complimentary meal coupons, have been curtailed significantly.

    “Bonuses, salary increments, and incentives have been put on hold while only travel allowance and basic salary paid,” the source said. Another source close to Fernandes said that Fernandes was also exploring the sale of unprofitable airline ventures in Japan and India.

    “He (Fernandes) is open to reduce stakes or even exit Japan and India, due to the complexity of the domestic industry and escalating costs if compared to sales,” the source, who declined to be named. Thai AirAsia was exploring a merger with several domestic budget carriers in an attempt to survive the pandemic.

    Malaysia’s government is also looking at channeling over $350 million to the country’s three main cash-strapped carriers AirAsia, Malaysia Airlines, and Malindo Airways as part of a broader economic rescue package.

    The government hopes the funds will help the airlines survive the pandemic crisis and new operating procedures which may include social distancing onboard and contactless check-in.

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