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Indonesia's Lion Air to furlough 8,000 staff due to COVID travel restrictions

Indonesia's Lion Air to furlough 8,000 staff due to COVID travel restrictions

7/31/2021 11:15:00 PM

Indonesia's Lion Air to furlough 8,000 staff due to COVID travel restrictions

Indonesia's biggest budget airline operator Lion Air Group announced plans on Saturday to furlough around 8,000 employees as travel businesses suffer disruption due to COVID -19 restrictions.

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

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Lion Air Group's operation have been reduced to 10%-15% of its normal capacity of 1,400 flights per day, it said.Indonesia suffered one of the worst coronavirus outbreak in Asia, with more than 3.4 million infections and over 94,000 deaths.Tight restrictions in Java, Bali and several other regions were imposed at the start of July after new cases surged due to the spread of the Delta variant.

Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Mike HarrisonOur Standards:More from ReutersSign up for our newsletterSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox. headtopics.com

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