Due to coronavirus, some Indonesian airlines are under pressure to layoff their employees including pilots, flight attendants, technicians, and support crews.
A report from the National Air Carrier Association (INACA) said a drastic decline in passengers since early March, has resulted in airlines cutting flight frequency by 50 per cent or more for both international and domestic flights.
“If there is more uncertainty about when coronavirus can be contained, this will worsen the aviation industry’s [situation] and may even lead to operational termination due to bankruptcy,” said Denon, chairman of INACA.
According to Denon, the pandemic is also affecting the supporting industries including aircraft maintenance, ground handling, and travel agents. “Therefore, INACA is really hoping for a positive response from the government to avoid more job cuts,” the chairman said.
The industry needs help in the form of fiscal incentives includes corporate income tax payment postponement, spare part import duty suspension, and government stimulus through cuts on several fees.
According to Angkasa Pura, the drop in flight numbers was already noted as early as late January. Around 12,703 flights with about 1.67 million passengers have been cancelled and 11,680 of these were domestic flights.
Source: Jakarta Post and Investing
Image: CNN Indonesia