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THE world airline industry was hit hard during the COVID-19 pandemic. No exception for the Indonesian aviation industry. Almost all national airlines have downsized employees.
Starting from Garuda Indonesia, which did layoffs of about 150 pilots, then followed by Lion Air Group who decided not to renew the contract of 2,600 employees, and the latest is Sriwijaya Air.
AIAC flight observer Arista Atmadjati said, the impact of the COVID-19 pandemic that had begun to erupt in February was still heavy for all national airlines. Low occupancy rates have eroded airline revenues.
“Layoffs are inevitable. All the world is like that. Although the government has given relaxation to the airlines, with the increase in occupancy limits to 70% of total aircraft capacity, but it is considered not able to boost airline revenue. Because, airlines are said to still be doing efficiency by not deploying all aircraft fleet,” Arista said.
Arista explained, the use of the maximum fleet was only 30% on average. Even Lion Air was 10% last month. Garuda Indonesia claimed 30%.
Furthermore, Arista said, the contribution of employees’ salaries or wages to the total operational costs of the airline was only 10-15%. However, with occupancy and fleet conditions that are still low, downsizing employees is considered an inevitable step by the airline.
“The 10-15% component is for all airplanes. At present it is not, that’s the problem,” Arista concluded. [kontan.co.id/photo special]
