Low-cost carrier AirAsia Berhad will terminate the services of 111 cabin crew from 1,900 crew members, 172 pilots and 50 engineers in a bid to downsize its operations.

The announcement of the termination was made by AirAsia Berhad Chief Executive Officer Riad Asmat at a briefing with the staff of the airline today.

A source told Astro AWANI that everyone involved in the separation scheme will be notified via email within 24 hours.

AirAsia Berhad also promised compensation to all involved.

Riad was also quoted as saying that the situation faced by AirAsia Berhad was extremely difficult and that all measures to reduce cost, monitor internal and external factors were inadequate.

The source said Riad also apologized to the AirAsia crew and stressed that the company had no other choice but to restructure the organization as the management could not guarantee the company would return to normal.

In fact, the termination of the workforce was not only carried out by AirAsia Berhad but in all divisions of the AirAsia Group.

At the same time, the source said there was no certainty as to whether there would be a pay cut among the rest of the staff.

It was understood AirAsia X (AAX) also announced a downsizing in workforce involving both Malaysian and foreign workers but the actual number was not disclosed in a briefing session led by AirAsia X Chief Executive Officer Benyamin Ismail earlier today.

The layoff was expected to affect the workforce of each sector including operations, management, crew and pilots.

According to a source, AAX would operate with about 15 to 16 aircraft when the international sector reopens – half of its fleet of 32 AAX-owned aircraft.

The session also explained bonus payments and incentives would be abolished but basic salary payments would be maintained including flight, sector and overnight allowances.