AirAsia grounds 96pc of fleet; biggest challenge says CEO
MALAYSIA, April 12, 2020
Budget airline AirAsia has grounded 96 per cent of its fleet, the carrier's founder and CEO Tony Fernandes announced.
"Like all airlines, AirAsia had no choice but to cancel a large number of flights due to government restrictions in an effort to contain the spread of Covid-19. We have no revenue coming in....and we still have significant ongoing financial commitments such as fuel suppliers and leasing agents," he said in a statement.
Painting a bleak picture, Fernades said: "When Kamarudin and I started AirAsia nearly 20 years ago, we had a dream of allowing everyone the opportunity to fly. Sadly, that opportunity has now been taken away from us for now."
"It’s an uncertain time. Never could I have imagined it, no one could have predicted it and yet everyone has been touched by it. So I want to be open and transparent with you in this time of uncertainty.
"There’s no denying that our industry has been hit hard, and we are no exception. This is possibly the biggest challenge we have ever had to face."
He stressed that the airline is doing everything possible to reduce costs during this time so it can "come back fighting as fast as possible".
"We are one of the few airlines world over who has kept all of our staff on. AirAsia is a family and there are tens of thousands of Allstars who depend on the business for their livelihoods and the wellbeing of their own families. Kamarudin and I will not be taking a salary during this period and Allstars from across the business have accepted temporary pay reductions of anywhere between 15-75 per cent, depending on seniority, to share the impact this is having on our business. I thank them for their sacrifice and in keeping the big picture in mind as we navigate this together." he said.
Addressing the airline's customers, Fernandes said: "I know many of you have expressed frustration with not receiving a refund for your flights but I encourage you to accept a credit as a good alternative. More than 80 per cent of you have accepted our credit offer and we truly appreciate this. Please know that our policy is in line with many operators in the travel industry and reflects our focus on coming out the other side of this difficult period and flying with you again as soon as possible. We have ensured that we adhere to all regulations and requirements of respective governments and consumer authorities and believe this is the best solution. You are among the over 600 million guests who have flown AirAsia and can’t wait to fly with you again once this is over."
"While we strongly encourage you to accept the credit which is instant and comes with a 365-day validity and allows you to change your flight date for an unlimited number of times, we do accept requests for refund on a case by case basis. However, due to the overwhelming number of requests that we have received, it may take a long process of between 12 to 16 weeks," he added.
"We’ve never had a time like this before and we are doing our best. We are not always perfect but we strive to do all we can for our people and our customers at all times. This is unprecedented but it is also temporary and we will be back, stronger than before, repainting the skies red and making sure everyone can fly again," he said. - TradeArabia News Service
