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04 November 2020
by Batik Air Malaysia by Batik Air Malaysia

PETALING JAYA, 4 NOV 2020 – Malindo Air clarifies that whatever sums it received from SOCSO were fully disbursed to its employees, and the airline did not retain any portion of these sums as is otherwise being baselessly alleged by certain quarters.

Under the Employment Retention Programme (ERP), Malindo Air received a total of RM1,267,200 for April 2020 which was credited in mid-May 2020 from SOCSO and disbursed to 2,112 staff. Thereafter, a total of RM1,486,800 was received in late June 2020 and credited to 2,478 staff accordingly.

Subsequently, when SOCSO discontinued the ERP and replaced this with the Wage Subsidy Programme (PSU scheme), only 196 staff benefitted from the same. A total of RM235,200 was received for the months of June and July 2020, which SOCSO only disbursed in late August and September 2020 respectively.

Nonetheless, Malindo Air has ensured that the staff who benefitted from both the schemes were retained for more than three months as per their governing rules.

Prior to the pandemic, Malindo Air notes that its average monthly revenue was RM200 million. This in turn supported a payroll of 5,000 personnel amounting to RM40 million a month. “The pandemic which resulted in the grounding of almost all of our fleet since March has had a crippling effect on our finances with current average revenue being just 7.5% of the pre-pandemic levels,” disclosed Malindo Air’s CEO, Capt Mushafiz Mustafa Bakri. He added, “How do you continue to maintain status quo eight months and still counting, when there is barely any revenue or meaningful support of any kind?”

Given the huge erosion in its cash flows due to the Covid-19 pandemic, the airline has had to undertake a massive cost-cutting exercise in order to remain afloat. Malindo Air downsized its fleet by 50% by transferring out 20 aircraft. This resulted in a monthly savings of about RM20 million. The airline also says that it has sought deferments and renegotiated contracts with its vast number of service providers including aircraft lessors and airports.

On the people front, Malindo Air stressed that despite having taken numerous steps such as a Voluntary Separation Scheme (VSS) for 349 of its staff and a Long Term Unpaid (LTU) scheme for 439 of its pilots and cabin crew, with no immediate prospect of restarting its regular operations, they are now having to resort to retrenching of 1,861 staff in order to remain in operations.

The airline nonetheless stressed that it is working closely with the Human Resources Minister YB Datuk M. Saravanan; the Director General of Industrial Relations Malaysia, En Khalid Jali; Jabatan Tenaga Kerja; SOCSO and HRDF to assist all its displaced staff to be retrained and reskilled for onward job placements.

Eight months on from the start of the pandemic and with no sight of any restrictions being lifted, borders being opened or the pandemic abating, air travel continues to remain in a state of flux globally.

For further enquiries, visit www.malindoair.com, write in to Customer Care at [email protected] or contact the Call Centre
at (60)3-7841 5388 from 9am to 6pm daily.
or India Customer Care at +91 1141714850 Mon to Fri 930 am to 530 pm or email [email protected]

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