ER
AIRASIA Indonesia considers that the level of demand for scheduled flight services has not improved so that the extension of the regular flight termination period for the next three months is the best option at this time.
According to AirAsia Indonesia Corporate Secretary Indah Permatasari Saugi said the extension of the temporary suspension was indeed carried out on the grounds of operational reasons, the extension of the period of social restrictions in some regions and the increasingly stringent provisions of the flights which caused the level of demand for scheduled flight services to improve.
“We estimate the period of termination or operational restrictions will last between one to three months,” she said through official press release.
She added, AirAsia regular flight services would adjust the operation of scheduled flights on international and domestic routes in stages, and were planned to begin on June 8, 2020 on certain routes. The company can return to operating flights on a limited basis if it is deemed possible.
According to Indah, the current situation with the Covid-19 pandemic, lockdown and
large-scale social restrictions has had a significant impact on the company’s finances, especially cash flow. It also has an impact on partial operational shutdown between one to three months.
“The contribution of income from operational activities which were halted and/or experienced operational restrictions on total (consolidated) revenue last year ranged from 51% to 75%,” she explained.
Indah estimates that the corona pandemic will result in a decrease in total revenue (consolidation) for the period ending March 31, 2020 with the fiscal year as of January 31 by 25% to 50%.
Meanwhile the decline in net profit is expected to reach more than 75%. Not only that, the COVID-19 pandemic has an impact on the fulfillment of principal obligations and debt interest, with the value of these obligations valued at IDR2 trillion. [sources /photo special]
