KUALA LUMPUR - AirAsia X Bhd is having trouble paying its staff and was forced to dole out salaries on a staggered basis last month, The Edge Financial Daily reported today amid the carrier’s plummeting share prices on the stock market.
According to the business newspaper, the long-haul sister company to budget airline AirAsia allegedly issued a circular stating that basic salaries, fixed and productivity allowances, and overtime were to be paid on October 24 while variable allowances that include flying, sector and night stop allowances and commissions were to be paid on October 31.
Posting allowances for charter flights, meanwhile, were to be paid on November 5, the daily reported, citing the circular.
The wage issue comes at a time when AirAsia X saw its cash balance drop to RM144.7 million as at June 30 this year, from RM262.9 million as at end of 2013, according to the business daily.
The airline’s finances were not helped by a 59.1 per cent hike to RM897.3 million in its operating expenditure, maintenance costs, aircraft operating lease expenses and other operating expenses.
The losses suffered since the fourth quarter of 2013 have left AirAsia X in a net debt position, the daily noted.
AirAsia X share prices on Bursa Malaysia went down 3 sen to rest at 71.5 sen at the noon break today, after opening at 73.5 sen this morning.
Citing unnamed sources, The Edge Financial Daily reported that the company’s current financial position has put a damper on loan approvals by financial institutions, as the airline continues to maintain its existing route network and take on delivery of new aircraft.
AirAsia X had in December 2013 placed what was reportedly the world’s largest single order in a single purchase agreement of 25 Airbus A330-300 jetliners.
The US$6 billion (RM19.2) deal will more than double the carrier’s current fleet of 20 A330-300 planes.
It currently operates scheduled flight to 21 destinations in Asia, five destinations in Australia and one in the Middle East, on top of offering chartered flights for business travellers.
The airline’s deteriorating finances have since spurred AirAsia co-founder and group chief executive officer Tan Sri Tony Fernandes to take on a “more prominent role” in AirAsia X’s management, sources told the financial daily.
Sources claimed that Fernandes called for a town hall meeting with the airline’s staff to announce a management shake-up at the AirAsia Training Academy in Sepang yesterday evening, with the aim of rebranding the airline.
This includes dropping its chartered airline services and focussing purely on scheduled flights.
AirAsia X has yet to respond to Malay Mail Online’s inquiry on this matter. -Malay Mail
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