In its official retrenchment notice, the battered airline said that it had no choice but to take drastic measures in order to keep the business afloat. Financially, the airline says that it is only earning 10% of its pre-pandemic revenue, while the majority of its aircraft are stuck in long-term parking. To that end, the airline is reducing its air fleet to five Boeing 737s and six ATR turboprops. Malindo said that affected staff will be notified of its termination compensation benefits and that it will also assist said staff via their Socso’s Employment Insurance Scheme.
The airline industry has undoubtedly been one of the most heavily battered by the ongoing Covid-19 pandemic. Many governments around the world have restricted international travel, while Malaysia has simply banned any and all commercial flights earlier this year, at least until it has gotten a hold of the current pandemic. Needless to say, Malindo isn’t the only local carrier that’s gasping for air. Recently, Air Asia X announced that it was going through a restructuring process, which left its customers unable to seek refunds or credits until the process is complete. On top of that, the airline shut down its Japan office and also said back in September that another round of layoffs seemed inevitable. Of course, national carrier Malaysia Airlines (MAS) has unsurprisingly been affected by the pandemic and currently faces the threat of shutting down, should its current restructuring program fail to help it break even by 2023. (Source: Malaysian Insight, The Vibes)
