JAKARTA - PT AirAsia Indonesia Tbk (CMPP) has been facing difficulties repaying the principal and interest of its short-term loans, which reaches Rp 2 trillion. The suspension of domestic and international flights is estimated to cause the airline's revenue to drop by over 25% throughout the year.
According to Corporate Secretary Indah Permatasari Saugi, the coronavirus (COVID-19) pandemic has disrupted the airline's operation since March 2020. "The company has since furloughed 873 employees and cut the salary of 328 employees by 50%. As of December 2019, AirAsia employs 1,691 people," she said in disclosure of information on Thursday (28/5).
The condition, she said, is expected to cause the company's revenue to drop by 25%-50% YoY and its profit to drop by 75% YoY in the first quarter of 2020.
She added that the company has been imposing strict cost-controlling measures, including by not extending aircraft lease contracts and renegotiating leasing expenses. (LK/AR)