On the verge of bankruptcy, airlines began laying off employees?

LionAir 1

The Indonesia National Air Carriers Association (INACA) revealed that airlines had begun laying off employees from the impact of Covid-19. Some flights may be threatened not to operate. INACA did not specify which airlines did so.

INACA Chairperson Denon Prawiratmadja, explained that in order to reduce the losses suffered, in recent times, a number of airlines have taken steps to anticipate.

He noted, since the beginning of March 2020 there has been a drastic reduction in the number of passengers. As a result, all airlines have reduced the number of flights, both routes, and frequency by up to 50% or more.

“It is predicted that if the completion of the Covid-19 pandemic is even more uncertain, this will make the aviation industry worse and even some will not operate due to bankruptcy,” Denon was quoted as saying on Friday (3/27).

One of the aviation market holders in the country, for example, Lion Air, had to close its domestic and foreign flights due to the impact of Covid-19, including flights to China and Wuhan, canceled Umrah flights, flights to and from Malaysia, domestic flights to Papua and others.

laying off employees?
Are flight attendants also threatened with layoffs?

Does Lion Air laying off employees?

Danang Mandala Prihantoro’s Strategic Corporate Communications of Lion Air Group stressed that it did not take such steps.

“There are no layoffs,” he told CNBC Indonesia, Friday (3/27)

He said Lion Air Group would continue and still monitor developments on a daily basis and follow every policy issued by the government and company recommendations.

“Regarding internal strategic policies facing the current situation, they are still being discussed by internal management,” he said.

He said that the current focus of Lion Air Group is to ensure that all flight crew, staff and passengers (guests) who use Lion Air Group services are safe while prioritizing aspects of flight safety, security, and comfort.

Millions of Indonesia Tourism Workers are Threatened from Layoffs due to Covid-19

The Ministry of Tourism and Creative Economy (Kemenparekraf) is preparing various policies and measures to deal with the impact of the coronavirus outbreak for the industry in the tourism sector and the creative economy. As a result of the corona pandemic, millions of workers in the formal and informal sectors of the tourism industry are threatened with layoffs.

laying off employees?

The Minister of Tourism and Creative Economy, Wishnutama Kusubandio, deems it necessary to provide special tax reduction benefits for hotels and restaurants that do not lay off their employees. He also suggested that the Pre-Work Card program could be prioritized for workers who were laid off due to the impact of the covid-19 outbreak.

“Extra benefits to companies that retain their employees, such as tax reductions for hotels and restaurants in Indonesia, will greatly help them. Regarding the Pre-Work Card, we recommend that this be prioritized for employees who have been laid off, “he said, Friday (3/27).

According to him, the government will soon announce measures and various strategies to reduce the impact of the coronavirus outbreak on the tourism sector and the creative economy. This is in line with the Presidential Instruction (INPRES) number 4 of 2020 which was published on March 22, 2020 concerning the refocussing of activities, budget reallocation, and procurement of goods and services in the context of accelerating the handling of the Covid-19 outbreak.

“We have coordinated with the Head of BNPB to prepare cooperation with hotel chains to become a place of rest for medical personnel and Task Forces in various regions. So that they are closer to the hospital that handles the plague and if needed can be used as an independent isolation location, “he said.

Not only that, but he is also coordinating with transportation to provide transportation facilities for medical officers and task forces.

Source: CNBC; IndonesiaInside; Tempo.co rewritten by Lintang Buana Tours

Leave a Reply