AWARD

Ahmad Razif Mohd Sidek:

Reference

[1] This is a reference dated 22 October 2020 (for Cases No: 3/4-2692/20, 3/4-2693/20 and 3/4-2694/20) and dated 7 October 2020 (for Case No: 3(20)/4- 2396/20) made by the Minister of Human Resources pursuant to subsection 20(3) of the Industrial Relations Act 1967 [Act 177] for an award in respect of the dispute arising out of the dismissal of Fernando Alberto Jimenez Ruiz Palacios ("Fernando"), Ricardo Andriano Garrido ("Ricardo"), Richard Emuel Jones Owen ("Richard") and Juan Andres Carrasquilla Orozco ("Juan Andres") (hereinafter collectively referred to as "claimants") by AirAsia Berhad (hereinafter referred to as "the company") effective on 8 April 2020.

Brief Facts

[2] This case was heard together with three (3) other cases ie (1) Case No 3/4-2693/20 Ricardo Andriano Garrido v. Airasia Berhad (2) Case No 3/4-2694/20 Richard Emuel Jones Owen v. Airasia Berhad and (3) Case No 3(20)/4- 2396/20 Juan Andres Carrasquilla Orozco v. Airasia Berhad, involving the same company and similarly circumstanced. Hence, this Award is handed down and applicable for the effectual disposal of four cases cited above. In arriving at the decision in this Award, this court had collectively considered all testimonies, oral and documentary evidence produced by the four Claimants as well as by the company.

[3] The company is a Malaysian multinational low-cost ariline established in 1993 and commencing operations in 1996 is the largest in Malaysia by fleet size and destinations. It operates scheduled domestic and international flights to over 166 destinations across 25 countries and its primary hub is situated at Kuala Lumpur International Airport (KLIA), where it operates from Terminal 2 KLIA.

[4] The claimants' employment history based on the Company's records can be summarised as follows:

(a) Fernando:

(i) Fernando commenced employment with the company on a fixed-term period for 24 months commencing on 27 December 2018 as a Captain.

(ii) Fernando was a foreign national who had an employment pass that expired on 26 December 2020.

(iii) Fernando's last-held position in the company was as Captain in the Flight Operations Department wherein his last drawn average salary (inclusive of fixed allowances) was approximately RM62,000.00.

(b) Ricardo:

(i) Ricardo commenced employment with the company on a fixed-term period for 24 months commencing on 24 April 2019 as a Captain.

(ii) Ricardo was a foreign national who had an employment pass that expired on 21 April 2021.

(iii) Ricardo's last held position in the company was as Captain in the Flight Operations Department wherein his last drawn average salary (inclusive of fixed allowances) was approximately RM62,000.00.

(c) Richard:

(i) Richard commenced employment with the company on a fixed-term period for 24 months commencing on 20 March 2019 as a Captain. Richard was a foreign national who had an employment pass that expired on 22 March 2021.

(ii) Richard's last held position in the company was as Captain in the Flight Operations Department wherein his last drawn average salary (inclusive of fixed allowances) was approximately RM62,000.00.

(d) Juan Andres:

(i) Juan Andres commenced employment with the Company on a fixed-term period for 24 months commencing on 3 December 2018 as a Captain. 11 Juan Andres was a foreign national who had an employment pass that expired on 30 November 2020.

(ii) Juan Andres' last held position in the company was as Captain in the Flight Operations Department wherein his last drawn average salary (inclusive of fixed allowances) was approximately RM62,000.00.

[5] Due to, amongst others, the global economic changes and the difficult operating environment in the airline industry, particularly in the Asia Pacific region, the AirAsia Group had experienced severe financial difficulties. In this regard, AirAsia Group Berhad ("AAGB") reported a net operating loss of RM457,000,000.00 in the year 2019 (p 4 of COB-1).

[6] The economic challenges above were aggravated by