National flag provider Garuda Indonesia revealed on Tuesday that it would end the agreements of a minimum of its 700 workers by Nov. 1 as the airline company has problem with low travel demand throughout the COVID-19 break out.
The employees being laid off have actually been taking unsettled leave considering that May, according to Garuda president director Irfan Setiaputra.
The airline exposed earlier this year that it would furlough around 800 agreement employees starting Might 14.
” We are forced to take the difficult choice in order to guarantee our company’s survival during these challenging times,” Irfan said in a declaration.
The company turned in a loss of US$7127 million in the first half of this year, a stark difference from last year’s net profit of $2411 million throughout the very same period, as travel constraint and border closures damage the airline company industry.
The COVID-19 global health crisis has continued to pressure the air travel market in Indonesia amid border closures that have triggered individuals to cancel travel plans.
” The pandemic has actually had unforeseeable long-lasting effects on our business’s performance, as we still haven’t seen any considerable improvements as of today,” Irfan said.
Garuda’s total profits in the very first six months of the year nosedived by 58.2 percent year-on-year (yoy) to $91728 million, according to the company’s financial report.
Meanwhile, the number of travelers who flew with Garuda between January and August dropped 70.1 percent yoy to 3.83 million.
Irfan included that Garuda aimed to meet all of the affected staff members’ rights in accordance with the law.
In early June, the airline company likewise ended the agreements of 180 non-permanent pilots, which included senior and outsourced pilots dealing with a contract basis.
Read also: Garuda lays off 180 agreement pilots
Garuda has actually also taken a number of measures to preserve its capital amid plummeting demand for flight, including by cutting staff member and executive salaries, cutting production costs for effectiveness and renegotiating obligations to partners and airplane lessors.
Besides Garuda, independently owned Lion Air Group laid off 2,600 contract employees from its subsidiaries affordable provider Lion Air, Wings Air and full-service provider Batik Air in July amid declining flight traffic.
