Pandemic; AirAsia Plans to Stop Flying 3 Months



Laila Afifa

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  • TEMPO.CO, JakartaAirAsia Indonesia (IDX: CMPP) is considering to stop flying for the next three months. The demand for scheduled flights has not improved, thus extending the temporary suspension becomes the best option amid the Covid-19 pandemic. 

    AirAsia Indonesia corporate secretary Indah Permatasari Saugi said that extending suspension is based on operational reasons, such as the extension of social restriction in some regions as well as the increasingly tight flight regulations, causing low demand.

    The budget carrier said that they may cease operations for one to three months. Regular flights will be adjusted to international and domestic routes operations.

    The plan will start on June 8, 2020, and the company will resume operations with limitations if situations allow it.  

    "Today's situation, the lockdown and the PSBB (large scale social restriction) have a significant impact on the company's finances—especially cash flow. It has led to ceasing certain operations for one to three months," she said on June 6.

    Indah said that the company predicts a 25 to 50 percent decline in Q1 consolidated revenue, while net profit is projected to drop more than 75 percent.