By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Is AirAsia in a Major Crisis after Grounding its Fleet?
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Is AirAsia in a Major Crisis after Grounding its Fleet?

Is AirAsia in a Major Crisis after Grounding its Fleet?

Travel Radar
Last updated: 30 March 2020 11:45
By Travel Radar Staff
3 Min Read
Share
SHARE

On 26th March, the Malaysian airline became another carrier to fall prey to the prevailing coronavirus (COVID-19) pandemic. The airline issued its statement to terminate regular flight operations. The airline stated, “it is temporarily hibernating most of its fleet across the network.”

Temporary Hibernation of #AirAsia Group Fleet: #AirAsia Group would like to announce that it is temporarily hibernating most of its fleet across the network.https://t.co/Nq639MQytP

— AirAsia (@airasia) March 26, 2020

The crisis has already taken a financial toll on the Asian airline; while a Malaysian investment banking group ‘Affin Hwan Capital’ expects the AirAsia Group, “to report steeper losses in excess of RM1.1 billion in 2020.”

Low travel demand and imposed border restrictions were the two major contributing factors to the decision made by the company. A detailed flight suspension list is posted on the AirAsia official website. AirAsia has suspended most short-haul flights until the end of April. Long haul flights by Air Asia X Malaysia will remain suspended till 31st May, while AirAsia Thailand X flights will be suspended till 19th April. However, the company will continue to run its cargo and logistics services named ‘Teleport’, as it is being used to transport medical supplies and protective equipment.

Airbus A320-216 AirAsia Malaysia © Macau Photo Agency

AirAsia has also imposed salary cuts for senior company executives in an attempt to curb expenses. The media press quote by AirAsia Group Berhad is as follows:

In our effort to further manage and contain costs, both the management and senior employees of AirAsia Group have volunteered a salary sacrifice, ranging from 100% at the very top to 15%.

Source: @sailampard, Twitter

The company has already notified all customers regarding their flight cancellations/changes and intends to keep them updated via SMS, email, and social media channel. AirAsia CEO Tony Fernandez, who was already dealing with allegations of ‘improper payment’, now has a lot more on his plate to worry about. In the last 24 hours, AirAsia customers have reported difficulty getting in touch with customer support to claim their refunds/credit.

While it is uncertain what the future might hold for the Asian carrier; it will take time before it can fully recover from the blows inflicted by the Global crisis. The company seeks to facilitate its customers by providing timely help in navigating the disrupted flight schedule.

You Might Also Like

Ancient Settlements, Ali Pasha and Aloe Vera in Albania
Lufthansa Unveils A350 for Long-Haul Flights from Frankfurt
British airways to use sustainable aviation fuel
Air France delights with Michelin-starred dining for Paris departures
Ethiopian Airlines receives Africa’s first Airbus A350-1000
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Airline Profile; Pakistan International Airlines – Part 2
Next Article Loganair all set to receive financial support from UK government
Subscribe
Login
Notify of
guest

guest

0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Emirates © Saim Munib on Unsplash
Emirates and flydubai Sign MoUs for ‘Dubai cashless strategy’
Aircraft Airline Economics Airlines Aviation Technology Travel Radar
East Midlands Airport , UK © EMA Airport
Data-led Vision for East Midlands Airport’s Commercial Potential
Airline Economics Airports Aviation Technology Travel Radar
President Donald Trump and VP Mike Pence
Air Traffic Control Tower Unmanned for 5 hours at Burbank Airport amid Government Shutdown
Airports Aviation Incidents & Accidents
Alpen Air tecnam P2012 Traveller Aircraft over Munich
Munich Airport Faces Halts due to Drone Sightings
Airports Breaking News Incidents & Accidents
An Emirates plane lands on the tarmac with a large city skyline in the background filled with high-rise buildings.
Emirates Enhances Accomodations for Passengers with Accessibility Needs
Airlines Travel
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up