Covid-19: Malindo Air asks staff to take up to 50% pay cut to cushion coronavirus blow

[flee 5]

KUALA LUMPUR (Reuters) - Malindo Air has ordered its staff to take up to a 50% pay cut and two weeks unpaid leave as the coroanvirus epidemic hurts air travel demand and the broader industry, according to a memo sighted by Reuters.

In a company-wide memo sent on Friday, chief executive officer Mushafiz Mustafa Bakri said the airlines have implemented several measures to cope with the revenue shortfall, including suspending flights, appealing to suppliers to defer payments, and asking staff to volunteer for unpaid leave.

“With a heavy heart, with not much of any further concrete options, we are now left with no choice but to ask each one of you to take a pay cut of your basic pay of up to 50% for the next several months until normalcy returns,” Mushafiz said in the memo.

As part of the pay cut, employees were asked to reduce their number of working days by up to 15 days a month.

Malindo Air, the Malaysian arm of Indonesia’s Lion Air, did not immediately respond to requests for comment.

More: https://www.reuters.com/article/us-health-coronavirus-malaysia-airlines/malaysias-malindo-air-asks-staff-to-take-up-to-50-pay-cut-to-cushion-coronavirus-blow-idUSKBN20U079

[Pall 0]

When a corporation have issues paying staff salaries, its days are numbered. Hopefully Malindo survive this wave through this measures. 

[KK Lee 5]

Desperate times call for desperate measures. Better to take short term pain for long term survival.

 

[jahur 0]

Malindo Air will begin transferring 15 Boeing 737s to its Lion Air Group sister carrier Batik Air this month.

Malaysia-based Malindo will lose half of its jet-powered fleet when it transfers the 15 737s to Indonesia-based Batik. Cirium fleets data shows that Malindo has 24 737-800s and six -900ERs in service. It also has 12 ATR 72-600s in service, with one now in storage.

 

https://www.flightglobal.com/fleets/malindo-air-transferring-15-boeing-737s-to-batik-air/137183.article

 

Looks like a sign of Malindo leaving Msia due to overcapacity. 

Edited March 12 by jahur

[flee 5]

Well their strategy was to disrupt and weaken Airasia so that they don't have resources to fight Lion Group in Indonesia. To some extent, this strategy has worked but it is still being played out. We just have to observe!

[Kenny Sing 0]

let's see what will happen next for Malindo.

[flee 5]

Malindo Air temporarily suspends international operations

https://www.malaymail.com/news/malaysia/2020/03/17/malindo-air-temporarily-suspends-international-operations/1847457