TEMPO.CO, Jakarta - Lion Air Group in a press release on Thursday, July 2, announced that it will not extend the contracts of local and foreign employees whose employment contract period has expired. The air carrier said that this decision will also apply to employees in its subsidiaries; Lion Air, Batik Air, and Wings Air.

In its press release, Communications Strategic of Lion Air Group Danang Mandala Prihantoro said that the difficult decision was made as the firm is forced to make in order to sustain the business and keep it afloat.

He explained that this is part of the firm’s attempt to streamline operations, reduce costs, and restructure the organization “Amidst flight operations that have yet returned to normal due to the COVID-19 pandemic.”

The aviation industry was forced to continue spending operational costs amid the pandemic that has caused them to remain inoperable to serve domestic and international flights. Lion Air Group has also imposed cost-cutting and wage cuts across management and employees alike for the past four months, which will continue until further notice.

Danang explained that the company opens the opportunity to re-employ the employees affected with the contract termination once business, operations, and company income return to normal.

“We would like to convey our gratitude and support shown by each and every one of our employees,” said the Lion Air Group spokesperson.

Read: Lion Air Group Offers COVID-19 Rapid Testing Services

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