AirAsia boss hopes customers accept credit instead of refund

CORONAVIRUS | AirAsia has urged its customers to accept store credit instead of refunds for cancelled flights due to the Covid-19 outbreak.

In a statement, AirAsia boss Tony Fernandez said more than 80 percent of customers have accepted credit as an alternative.

"We truly appreciate this," he said, adding that this policy is in line with many operators in the travel industry.

"It reflects our focus on coming out the other side of this difficult period and flying with you again as soon as possible.

"We have ensured that we adhere to all regulations and requirements of respective governments and consumer authorities and believe this is the best solution."

Fernandez said the credit was valid for 365 days and the flight date can be changed an unlimited number of times.

Like many other airlines across the world, nearly the entire AirAsia fleet of 207 planes have been grounded due to the Covid-19 outbreak and the company is scrambling to conserve cash.

However, he warned that the number of customers seeking refunds was "overwhelming" and the process might take between 12 to 16 weeks.

No layoffs yet

AirAsia was not offering any form of incentive for customers to accept credit instead of a refund.

For instance, Singapore Airlines was offering bonus flight credits of up to SG$500.

Fernandez said AirAsia has no revenue because 96 percent of its fleet has been grounded yet the company still has financial commitments to meet, such as fuel suppliers and leasing agents.

He said the company was, therefore, doing everything possible to reduce cost during this time in order to return to normal as soon as possible.

"We are one of the few airlines the world over who has kept all of our staff on.

"AirAsia is a family, and there are tens of thousands of Allstars who depend on the business for their livelihoods and the wellbeing of their own families," he said.

Fernandez said he and AirAsia Group Bhd (AAGB) executive chairperson Kamarudin Meranun will forgo their salaries for now while AirAsia staff have to undergo temporary pay reductions, from 15 percent to 75 percent depending on seniority.

"I thank them for their sacrifice and in keeping the big picture in mind as we navigate this together," he said. - Mkini