Lion, which operates Wings Air and Batik Air, is operating at between 10% and 15% pre-pandemic capacity. FMTNews
JAKARTA: Indonesia’s Lion Air Group is slashing 2,600 jobs as the coronavirus pandemic hammers Southeast Asia’s biggest carrier, a company spokesman said Monday.
The layoffs — about 9% of the airline’s 29,000 employees — would mainly affect contract workers, it said.“Lion Air Group is in a difficult and challenging period due to the effects of … Covid-19,” said Lion Air spokesman Danang Mandala Prihantoro. “The tough decision is taken as a strategy to maintain business continuity, streamline the company’s operations, to reduce expenses and restructure the organisation.”Lion, which operates several brands including Wings Air and Batik Air, is operating at between 10% and 15% of its 1,400 to 1,600 daily flights before the pandemic, according to company data.It later relaxed those restrictions, but Indonesia’s carriers have been hit as the outbreak hammers the global aviation industry.
Indonesia’s flight sector is on track for a 49% passenger plunge and US$8.2 billion drop-off in revenue this year compared with 2019, the International Air Transport Association has estimated.
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