At Least 2,600 Lose Jobs as Indonesia's Lion Air, Sriwijaya Air Downsize

Although the Indonesian government has provided leniency to airlines, limiting the occupancy rate to 70 percent is insufficient to drive more income for these air carriers.

Read also: Grab Reduces 5 Percent of Workforce Due to Coronavirus Pandemic

Most of it is because these airliners are still optimizing its efficiency by operating some of its fleet.

The salaries or salary contributions airlines make to their employees make up 10 to 15 percent of an airline’s total operational cost.

Thus, with the low occupancy rate and the deployment of the aircraft fleet, downsizing the workforce is an unwanted step to take for these air carriers. 

(Writer: Rully R. Ramli, Akhdi Martin Pratama | Editor: Sakina Rakhma Diah Setiawan, Erlangga Djumena, Yoga Sukmana) 

Source: https://money.kompas.com/read/2020/07/06/160700926/garuda-lion-air-dan-sriwijaya-air-mem-phk-pegawai-mengapa

https://money.kompas.com/read/2020/07/06/133712326/setelah-garuda-dan-lion-air-giliran-sriwijaya-yang-kurangi-karyawan

https://money.kompas.com/read/2020/07/02/170502026/imbas-covid-19-lion-air-pangkas-2600-karyawan