AirAsia sees more layoffs if April domestic flights stay grounded

COVID speeds non-airline business expansion by loss-hit budget carrier

20210309 air asia aircraft

AirAsia is ready to furlough more workers unless domestic coronavirus travel curbs end next month, its president says. (Photo by Keiichiro Asahara)

P PREM KUMAR, Nikkei staff writer

KUALA LUMPUR -- Low-cost carrier AirAsia is ready to furlough more workers unless domestic coronavirus travel curbs end next month, even as the company speeds expansion of its non-airlines business to fill an earnings hole, top executives told Nikkei Asia.

The airline founded by local tycoon Tony Fernandes and its budget model have been hammered by the drop in international air travel, while movement restrictions between states in Malaysia are also choking revenue. AirAsia Group President Bo Lingam said in an interview with Nikkei that it is critical for internal routes to reopen.

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