Malaysia’s budget airline AirAsia could become the next casualty of the Covid19 pandemic, which has grounded fleets around the world and already forced the demise of NokScoot, another regional budget carrier. AirAsia’s auditor is warning that the airline’s future is in “significant doubt” due to the collapse in demand for air travel caused by the coronavirus and regional governments closing borders.
The aviation industry is facing its biggest-ever crisis worldwide due to the outbreak, with many airlines laying off vast swathes of staff and some already out of business.
Not so long ago AirAsia shook up south east Asian budget air travel with its slogan “Now everyone can fly.” On Monday the company reported a record quarterly loss of 803 million ringgit (5.9 billion baht). Auditor Ernst & Young said Tuesday that “travel and border restrictions implemented by countries around the world have led to a significant fall in demand for air travel, which impacted the group’s financial performance and cash flows.”
In an unqualified audit opinion statement to the Kuala Lumpur stock exchange, the
accountancy firm noted the “existence of material uncertainties that may cast significant doubt on the group’s and the company’s ability to continue as a going concern.”
Trading in AirAsia’s shares was halted this morning but resumed in the afternoon. AirAsia Group shares slumped nearly 18% when trading resumed following the suspension. The budget airline pared its loss down to 12% as of 3:40pm local time. Trading was halted Wednesday until 2:30pm local time.
AirAsia’s CEO Tony Fernandes said on Monday…. “This is by far the biggest challenge we have faced since we began in 2001.” He says the carrier is in talks for joint ventures and collaborations that could result in additional investment, and it has applied for bank loans and is weighing other proposals to raise capital.
Last month, South Korean conglomerate SK Group announced it was reviewing a
proposal to buy a small stake in the airline. In May, AirAsia sent a memo to Malaysian banks seeking to borrow 1 billion ringgit, (7.3 billion baht) according to people familiar with the matter.
AirAsia said in an exchange filing Wednesday that Ernst & Young’s statement and a decline in shareholder equity triggered the criteria for a so-called Practice Note 17, which applies to financially distressed companies. But the airline won’t be classified as PN17, as the Malaysian exchange suspended application of the status from April through June next year as part of relief measures in light of the coronavirus pandemic.
AirAsia needs at least 2 billion ringgit this year to stay afloat, according to an aviation analyst at UOB Kay Hianin Singapore.
“There’s not a lot of options, and the best one could be the government stepping in but seeking a rights offering by the company in exchange.”
Despite the warnings, there are signs of improvement with the gradual lifting of restrictions on interstate travel and domestic tourism activities in the countries where AirAsia and its units operate.
Marvin Tan, SVP Customers Services & Operations and Tan Pee Teck the current cabin crew SVP delivering an encouraging message to the staff and the world that Singapore Airlines will emerged stronger and better post Covid-19.
I wish SIA all the best...jiayou!!! 💪👍
While you can go to Singapore Airlines’ Facebook page to read the whole complaint, let me summarize the traveler’s concerns. This involves a passenger’s experience on June 20, 2020, flying SQ324 from Singapore to Amsterdam.
The traveler is a Solitaire PPS Club member (Singapore Airlines’ top tier status) who was in business class, a ticket he claims he paid $7,000 for (presumably SGD, which is ~5,030USD).
Chompoo, 24, has dreamed of working at an airline for years. With this goal in mind, the aspiring flight attendant majored in English and Mandarin at university to help give her an edge over other applicants.
But one year after graduation, the Thai woman's dream has yet to take flight. She failed an interview with a local airline in February, and with global aviation and tourism now battered by the coronavirus pandemic, there are no jobs to apply for.
Nevertheless, Chompoo is not lying idle. She is seizing the chance to improve her service skills and command of Mandarin, because she wants to work with regional airlines whose main customers are Thailand's largest group of foreign visitors: Chinese tourists.
To boost her skills, Chompoo has also enrolled in a flight attendant workshop - classes which have risen in popularity over the years as instructors meet the demand of training aspiring workers.
In Thailand, many young people dream of working as a flight attendant, seeing a career in the airline industry as a ticket to financial independence, an elevated social status and a more comfortable lifestyle.
The workshops include lessons on grooming, interview techniques and English skills. Given the coronavirus pandemic, some courses have now gone virtual, including those offered by Tanyalak Lobyam, a cabin crew worker who has been grounded since March.
Tanyalak is hoping to use this period to embark on a new career as a private flight attendant tutor, as the crisis has left her employer, a local airline, in dire straits.
"I like to teach. I want to bring out the best in everybody," said Tanyalak, who has worked as a flight stewardess for 10 years.
Tanyalak said she has taught some 50 students both online and in person. She sees the coronavirus downturn as a good time for people to upskill. "Everyone has to travel at some point in the future, and students need a short cut to get the job," she said.
Meanwhile at Perfect Angel's by Ajarn Aum, a flight attendant school in Bangkok, a dozen students in full make-up sit in a classroom with their backs straight and hair held tight, and clad in pencil skirts, stockings, black high heels. The lone male student wears a sharp black suit and tie.
"This is an intensive class. We want to simulate the actual flight attendant interview," said Monchaya Khuptawinthu, school's founder, tutor and a former flight attendant for a Middle Eastern airline.
"We want to train them to be themselves as much as possible, and not to sit uncomfortably, because they never dress like this when they meet recruiters."
Monchaya does a pre-screening before accepting students. The general expectation is that students come with a good attitude, meet a certain height and weight requirement, maintain even complexion and good teeth. No visible tattoos are permitted.
The course, which can last a few months or longer depending on the students' skills, will be about "fixing any shortcomings, be it language or personality", Monchaya said.
Monchaya said of the more than 4,000 students she has trained in the past decade, eight in 10 have made it to their dream job.
Among the rewards of the career are that "they can be financially independent faster", she said.
"Some purchase the first house and the first car in just a year, and take their parents for a trip abroad on top of that," Monchaya said.
Aspiring flight attendants from around Southeast Asia have similar aspirations, Monchaya said. They want to attain financial independence and the opportunity to broaden their world outlook through travelling.
"The starting salary for new graduates in each country is different, but airlines offer the same rate of starting salary regardless of nationality," she said.
Monchaya noted that the job was also competitive in South Korea and Japan, which have both seen a rising interest by young people to work for Middle Eastern airlines, attracted by the perks such as free accommodation and tax-free income.
A documentary by YouTube channel Asian Boss last year featured the demanding training regimes that South Korean students undergo to be employed as flight attendants at major airlines, which reject 110 applicants for every one person they hire.
"South Korean contestants are usually highly qualified, for example, holding a Master's degree or speaking several languages," Monchaya noted.
In Thailand too, Monchaya has tutored graduates of engineering or medicine, as well as actors, models or beauty queens. "They want a job where they can enjoy life at the same time, and with reasonable income," she said.
Aviation careers have been quite stable until the coronavirus pandemic hit this year. According to the International Air Transport Association (IATA), global air travel fell 95 per cent below 2019 levels in April.
Even if borders open and demand rises in 2021, airlines will still be financially fragile, with revenue from passengers expected to drop by more than a third from 2019.
In Thailand, national carrier Thai Airways was stripped of its state enterprise status and filed for bankruptcy in May due to years of losses and mismanagement, coupled with the pandemic.
Budget airlines NokScoot, a joint venture between Singapore-based Scoot and Thailand's Nok Airlines, announced in late June its liquidation plan, leaving some 450 staff and crew members unemployed. It said it could not foresee recovery from the effects of the coronavirus crisis.
In Hong Kong, Cathay Pacific secured a government bailout in June as part of a recapitalisation plan, while Singapore Airlines reported in May annual net loss for the first time in its 48-year history.
Dubai-based Emirates Airlines began a second wave of lay-offs last month, cutting 600 pilots and 6,500 cabin crew workers, while Qatar Airways plans to drop about 20 per cent of its workforce.
Air New Zealand has said at least 3,500 workers will lose their jobs, while Qantas last week said it would let go at least 6,000 employees.
Thitipong Geenupong, a flight attendant and founder of Thaicabincrew.com, a website that provides information about airline recruitment and applications, said his website traffic had not declined even though the last job posting was published in March.
This suggests that young Thais still hold the same level of interest in the job, Thitipong said.
"I'm surprised," he said. "They might think airlines will recover soon, though I don't think that's the case."
After 25 years as a flight attendant, Thitipong has a balanced view about the job. "It is not always fun, sometimes it is boring and stressful, but, as a job, it sustains you," he said.
Tanyalak, the flight attendant trainer, said as with everything, there are pros and cons to the job that young people may not fully comprehend.
"An image attached to the job is that cabin crew are good looking, rich and travel the globe. It is like they are somebody," she said.
She noted that the job was also often physically demanding and many have "cracked" mentally from the pressure of having to please people.
"But who wouldn't want to post on Instagram their dinner in South Korea, nightlife in Dubai, skiing in Switzerland or wakeboarding in Qatar? It's the 'Me Generation'," she said.
I heard that around 400 foreign cabin crew are trying to return to Singapore after their vnpl (voluntary no pay leave). It seems that they would have to pay for the Covid test when they arrive at SG. In addition, they will have to served out a 14 day quarantine at designated stations (may be in hotels) and have to pay for the bills. This is what I have heard but I may be wrong.
Virgin Australia which SIA has a 20% share is bought over by Bain Capital, a USA based investment firm. VA is saddled with a A$7 billion debt and almost went bankrupt if not for Bain Capital. VA has 9,000 employees and the new owner intends to keep at least 5,000.
NokScoot, another budget carrier which is 49% owned by SIA is close to bankruptcy. It current owners are Thai's Nok Air (51%) and Scoot (49%).
This above phishing emails were sent to the crew. What information would the hackers want from the crew? They (the crew) do not have much money to steal from or perhaps they want to steal the stewardesses' personal particulars so can bed them.
Many countries are easing lockdowns and people are flocking to the beaches, malls etc. despite of the ever presence of the coronavirus. People have let their guard down and going about as though the Covid 19 virus has been defeated. Some airlines are forbidding their cabin crew to wear masks or not practicing social distancing on their planes.....all in the name of profits!
Now the second wave of the virus is plaguing countries like China, Germany, South Korea, Victoria (Australia) and some part of USA. If the situation escalates, more people will be infected and the mortality rate will inevitably rise.
As an airline, SIA, will be affected again. Some airports will be closed and the demand for flights will be very low even as many airports are opening.
It will be the demise of air travel and tourist related industry. Not only airlines but most industries will be impacted. The result will be more people losing their jobs and most economies will be bankrupted.
Is Revelation 13:17 of the bible going to be fulfilled?
