Covid crisis deepens for Lion Air, Singapore Airlines sees path to recovery

Different fates: Lion Air And Singapore Airlines

Indonesia’s biggest budget airline Lion Air Group on July 31 said it will send around 8,000 employees, or up to 35 per cent of its entire workforce, on unpaid leave as its business suffers severe disruption from the Covid-19 restrictions.

Lion Air Group, which operates Lion Air, Wings Air and Batik Air, will furlough between 25 and 35 per cent of its 23,000 employees after being forced to reduce its flight operations due to pandemic-related travel. restrictions.

Overall, the group’s operations have been reduced to ten to 15 per cent of its normal capacity of 1,400 flights per day, it said.

The decision to furlough staff was taken to “maintain the business and company’s sustainability, streamline company operations, reduce costs and restructure the organisation amid aviation operational conditions that have yet to return to normal from the impact of the COVID-19 pandemic,” the statement said.

Indonesia suffered one of the worst coronavirus outbreak in Asia, with more than 3.4 million infections and over 94,000 deaths.

Singapore Airlines optimistic over rise in passenger capacity

Meanwhile, Singapore Airlines said it sees a path to recovery as Singapore considers reopening to international travel.

The airline last week reported a strongly narrower net loss of $302 million in the first quarter ended June 30 of the financial year 2021/22 and an improvement of 63.6 per cent from the record loss it suffered at the height of the COVID-19 pandemic last year.

The improvement was mainly owing to increased cargo capacity, but passenger capacity at the end of the reported quarter also recovered significantly and rose to 28 per cent of pre-Covid-19 levels.

The number of passengers carried by the group for the quarter, including low-cost carrier Scoot, was 362,000, up from 38,000 a year earlier, the airline said.

Overall, Singapore Airlines projects that passenger capacity would reach 33 per cent of pre-pandemic level and that it would serve at least 50 per cent of locations it did before the pandemic by the end of September.



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Different fates: Lion Air And Singapore Airlines Indonesia's biggest budget airline Lion Air Group on July 31 said it will send around 8,000 employees, or up to 35 per cent of its entire workforce, on unpaid leave as its business suffers severe disruption from the Covid-19 restrictions. Lion Air Group, which operates Lion Air, Wings Air and Batik Air, will furlough between 25 and 35 per cent of its 23,000 employees after being forced to reduce its flight operations due to pandemic-related travel. restrictions. Overall, the group's operations have been reduced to ten to 15 per cent of its normal...

Different fates: Lion Air And Singapore Airlines

Indonesia’s biggest budget airline Lion Air Group on July 31 said it will send around 8,000 employees, or up to 35 per cent of its entire workforce, on unpaid leave as its business suffers severe disruption from the Covid-19 restrictions.

Lion Air Group, which operates Lion Air, Wings Air and Batik Air, will furlough between 25 and 35 per cent of its 23,000 employees after being forced to reduce its flight operations due to pandemic-related travel. restrictions.

Overall, the group’s operations have been reduced to ten to 15 per cent of its normal capacity of 1,400 flights per day, it said.

The decision to furlough staff was taken to “maintain the business and company’s sustainability, streamline company operations, reduce costs and restructure the organisation amid aviation operational conditions that have yet to return to normal from the impact of the COVID-19 pandemic,” the statement said.

Indonesia suffered one of the worst coronavirus outbreak in Asia, with more than 3.4 million infections and over 94,000 deaths.

Singapore Airlines optimistic over rise in passenger capacity

Meanwhile, Singapore Airlines said it sees a path to recovery as Singapore considers reopening to international travel.

The airline last week reported a strongly narrower net loss of $302 million in the first quarter ended June 30 of the financial year 2021/22 and an improvement of 63.6 per cent from the record loss it suffered at the height of the COVID-19 pandemic last year.

The improvement was mainly owing to increased cargo capacity, but passenger capacity at the end of the reported quarter also recovered significantly and rose to 28 per cent of pre-Covid-19 levels.

The number of passengers carried by the group for the quarter, including low-cost carrier Scoot, was 362,000, up from 38,000 a year earlier, the airline said.

Overall, Singapore Airlines projects that passenger capacity would reach 33 per cent of pre-pandemic level and that it would serve at least 50 per cent of locations it did before the pandemic by the end of September.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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