KUALA LUMPUR – AirAsia has formalised a RM99.5 million charter service contract with the Malaysian Armed Forces (MAF), which includes special aircraft leasing and daily charter services across domestic routes until August 1, 2027.
“AirAsia will facilitate the movement of MAF personnel using commercial flights from Monday to Friday for duty and welfare travel in tandem with AirAsia’s existing commercial flight schedule, ensuring seamless integration while maintaining passenger convenience,” the airline said in a statement.
The arrangement also includes exclusive aircraft charters for MAF personnel, with no commercial passengers onboard.
Beyond air transport, the contract covers full logistical support, including in-flight meals, baggage handling, and ground transfers to and from military camps.
AirAsia Malaysia chief executive officer Datuk Captain Fareh Mazputra said the deal “reaffirms AirAsia’s commitment, as the people’s airline, to continue serving the nation and supporting government initiatives.”
This was announced in conjunction with the Langkawi International Maritime and Aerospace (Lima) 2025 exhibition, and amid talks of a major restructuring exercise expected to be finalised by August.
Earlier today, Scoop reported that the company plans to retrench about 20% of its regional workforce, affecting departments like cabin services, logistics, engineering, and sales, according to sources.
The move is part of a cost-alignment strategy, after two years of unstable revenue growth. Though the airline saw a modest rebound – reporting RM3.2 billion in revenue last year, up from RM2.5 billion in 2023 – it is still believed to be spending heavily on salaries.
Checks by Scoop suggest AirAsia may be paying out up to RM4.2 billion a year on wages across its 30,000-strong workforce. The airline’s goal is to increase annual revenue to between RM5.5 billion and RM7 billion by 2026.
This is not the first time the airline would go through downsizing. During the Covid-19 pandemic, AirAsia let go of thousands of staff in multiple rounds of retrenchment.
In April 2021, Group CEO Tony Fernandes shared his intention to rehire all retrenched staff once the airline’s business recovered.
Some of those retrenched were offered jobs in the airline’s now-defunct agriculture e-commerce arm, Ourfarm. – May 23, 2025