19 October 2020
Malindo Airways Sdn Bhd (Malindo Air) will downsize its operations and reduce its workforce by 2,200 personnel to ride out the turbulence brought about by the Covid-19 pandemic.
A source from the airlines said the matter had been agreed upon by the management of Malindo Air during a meeting which took place on Friday.
The source added that at present, the low cost airline which has 3,200 staff has decided to retain the services of only about 1,000 personnel.
“The fleet of aircraft will also be downsized. The airline currently operates five jet powered aircraft comprising of Boeing 737-900ER and the 737-800, along with six ATR72-600 turboprops.
“The low cost carrier has also requested staff who are retained to double up on job responsibilities and scope of work, to offset the reduction in manpower.
“The last day for those whose services will not be continued, would be on Nov 30,” the source told Berita Harian.
Malindo Air at one time had 5,200 staff on its roster, many of whom were laid off earlier this year.
The low cost carrier also reduced its flight capacity by more than 50 per cent compared to last year.
At one time, Malindo Air boasted an operational fleet of as many as 24 Boeing 737-800 aircraft, six Boeing 737-900ER aircraft and 12 ATR 72-600 turboprops.
In March, Malindo Air transferred some of its fleet to its code sharing partner airline Batik Air.
The airline’s management also implemented a few pre-emptive control measures such as suspending some of its services, apart from seeking a deferment on payment from airport operators, ground management companies, suppliers and vendors.
It also requested it’s personnel voluntarily take no pay leave, while senior management took up to a forty per cent pay cut.
Malindo Air was a joint venture low cost carrier between Malaysia’s National Aerospace & Defence Industries (Nadi) and Indonesia’s Lion Group, with the former holding a 51 per cent stake and the latter the remainder.
However, in 2017, Nadi relinquished its stake in the airline. At present, Malindo Air former chief executive officer (CEO) Chandran Rama Murthy holds 51 per cent stake in the airline via Sky One Investors Sdn Bhd, with Lion Group retaining its 49 per cent.