Indonesia’s Lion Air Group lays off 2,600 employees due to COVID-19 impact
Indonesia’s budget carrier Lion Air Group on July 3 said it had to lay off 2,600 contract employees, or 9 percent of the group’s 29,000-strong workforce.
Jakarta (VNA) – Indonesia’s budget carrier Lion Air Group on Juꦓly 3 said it had to lay off 2,600 contract employees, or 9 percent ofthe group’s 29,000-strong workforce.
A company representative said the workcontracts of those 2,600 workers of its subsidiaryairlines Lion Air, Wings Air and Batik Air would not be renewed amiddeclining flight traffic as the pandemic has not been put under control inIndonesia.
The group said it was currently operating at just 10to 15 percent of its normal capacity of between 1,400 and 1,600 flight🅠s perday.
“The COVID-19 pandemic hasput the airline industry in a state of coma. Meanwhile, the company still needsto pay large expenses, which creates a great challenge for us,” it said in astatement. “We need to make the difficult decisions to ensure our businesssurvives through operational downsizing, cost reduction and organizationalrestructuring amid the current airline industry situation that hasn’t return tonormalcy,” the statement added./.
The Indonesian Ministry of Transport on May 8 announced its decision to resume air services, but at a limited level, after two weeks the country banned air and sea travel to curb the further spread of the COVID-19.
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Lion Air aircraft (Source: VNA) 
