Protect aviation sector from impact of Covid-19, Nufam tells Putrajaya

Protect aviation sector from impact of Covid-19, Nufam tells Putrajaya

The National Union of Flight Attendants Malaysia says a special committee must be set up to help airlines and thousands of employees survive the impact of the pandemic.

Malaysia Airlines Bhd said it was prepared to shut down if ongoing talks with leasing companies about a restructuring plan fail.
PETALING JAYA:
The National Union of Flight Attendants Malaysia (Nufam) has urged the government to play a bigger role by setting up a special committee to protect both airline businesses and staff from an economic downturn.

In a statement today, Nufam said this would help airlines and thousands of employees survive at a time when Covid-19 travel restrictions have greatly impacted the industry.

The union said it was waiting for a response from the transport ministry and those in the aviation sector to discuss the matter.

It warned the ministry not to make any decisions without consulting workers’ unions and associations first, and urged the government to avoid merging airlines as it would further impact airline staff.

“When things are good, they ask workers and unions to help during Covid-19 but when they want to shut down their business, they don’t want to talk to us.

“There should be some responsibility and accountability by the government now to help those who need help the most.

“If Malaysia Airlines and AirAsia plan to shut their businesses, then it will only prove how incapable this government is.“

The union also called on airlines to allow their staff members to supplement their income by holding part-time jobs during the Covid-19 downturn, saying this would allow them to earn extra income after suffering salary cuts.

Current policies do not allow employees to work elsewhere or earn other forms of income. Nufam said there was no harm in relaxing these terms as it is now “a matter of survival”.

“If the employees are given the option to work elsewhere or are put on temporary furlough, why not? The workers need to survive, too.

“Some airlines, it appears, are too stringent and choose to let go many employees instead.”

It asked airlines to consider closing half of their flight operations and to avoid calling in staff for standby or training during this period to reduce costs, rather than shutting down completely.

“We must all adjust to these trying times and every sen counts if these airlines are already thinking of closing down.

“Closing down a business won’t do the parties any good because when these airlines go bust, everyone, including those they owe money to, will cave in together with them.”

Yesterday, Malaysia Airlines Bhd CEO Izham Ismail told The Edge Malaysia that the company was prepared to shut down if ongoing talks with leasing companies about a restructuring plan fail.

He said the deadline for creditors to decide was today. After this, the company will choose to either proceed with the restructuring plan or execute “Plan B”, which may involve the passing of its air operator’s certificate to a new carrier under a different name.

The airline, wholly owned by Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, announced earlier this month that it had embarked on an “urgent” restructuring exercise that involves renegotiating with lessors, as it sees little sign of the pandemic easing.

The company has cut salaries for management and pilots, offered unpaid leave to employees, and has sought payment deferrals and contract renegotiations since March. It is now reviewing its network and fleet plans.

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