Report: As share prices fall, AirAsia X faces trouble paying salaries

KUALA LUMPUR, Nov 18 — 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.

据报道,马来西亚廉价航空公司亚洲航空子公司亚洲航空X,出现财务问题,拖欠员工薪水。

马国《英文财经日报》报道,根据亚洲航空X向员工发出的通知,公司会分期支付员工上个月的工资和津贴。公司表示,一些款项被拖延,导致公司无法支付员工薪水。

报道也引述的消息说,除了拖欠薪水,公司也因为现有的财务状况,而难以取得贷款。

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.