The airline industry is in dire straits, across the globe commercials planes are mostly grounded and staffs are being told to take unpaid leaves or being furloughed. Malaysia is no exception to the Covid 19 pandemic and our airlines are also affected since January, both MAS and AirAsia have not been able to function due the double whammy.

While MAS has a history of struggle going under numerous times, the national carrier had bailouts from the Government to save it from shutting down, however AirAsia a commercially owned conglomerate, successful with operations in Malaysia, Thailand, India, Philippines, Indonesia and Japan is facing a new challenge like any other. We have not heard from MAS on its plans to mitigate this unprecedented situation its in, but AirAsia is about to take some drastic actions to keep the airline afloat for the next foreseeable future.

In a open letter, AirAsia Group CEO Tan Sri Tony Fernandes shared his heartfelt appreciation to his customers and called upon his team to persevere and weather storm together. The CEO and his partner were the first to forego their monthly wages since the Movement Control Order was enacted. With 96% of his fleets grounded there is no revenue whatsoever, and monthly bills by the hundreds of millions have to be paid. AirAsia has imposed a temporary paycut from between 15-75% depending on seniority during this tumultuous time period in order for the airline to get back on its feet when things get back to normal. This is much commendable compared to airlines in Europe announcing retrenchment.

On the issue of refunds, the CEO had this to say:

“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 percent of you have accepted our credit offer and we truly appreciate this.”

The airline is offering credits instead of a full refund, it wants customers to fly again on its planes. The credit will be given to all customers who had bought tickets and can utilise them over the next 1 year period. During this time they have the privilege to change flight dates for an unlimited number of times, however for those who are insisting on a refund the airline will accept requests on a case by case basis which can take a long process of between 12 to 16 weeks.

Tony goes on to welcome feedbacks and suggestions with some 1800 staffs now redirected to manage social media and customer service.  He ends the letter with these parting words, “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.”