THE usage of public funds to save airline companies hard hit by the Covid-19 pandemic should not be seen as a bailout, said Ismail Nasaruddin.

The National Union of the Flying Attendants of Malaysia (Nufam) president said the massive “overnight” losses incurred by the airlines were not due to mismanagement but an abrupt halt in world travel.

He said the term “bailout” only applied in cases where public funds were used to save companies from going under as a result of their mismanagement or financial misconduct.

“Any injection of funds by the government to reboot the (aviation) industry must be considered a stimulus package because the airlines industry is a vital cog in the national economy. It is one that provides the boost to many associated sectors,” Ismail said on an MTUC webinar on Covid-19 and the protection of workers.

He said the ailing airlines industry in Malaysia is in urgent need of help from the government as more than 100,000 workers, including pilots, flight attendants and ground staff, have either had their pay frozen or been forced to take massive salary cuts.

Ismail said the number of those in the industry who are in dire straits is three or four times more if their dependants are taken into account.

He said the government has failed to understand that most of the airline workers In Malaysia earn a low basic salary and depend on various allowances to sustain themselves and their dependents.

Many of these workers have had their allowances frozen or reduced  and were forced to take pay cuts when Malaysia and most other countries grounded flights to contain the spread of the virus.

Ismail said local airline employees were deemed “overqualified” for the Prihatin cash aid because the Inland Revenue Department assessed their applications by their 2019 income, when the industry was “normal”.

Ismail said many cabin crew members earn a low basic salary which can be as little as RM1,200 and even this amount was reduced by half when the pandemic struck and air travel was halted.

Ismail said the government must not overlook the contributions of the airlines, tourism and related economic sectors, which he said are the third highest contributor to the national GDP.

“We are key players and a financial injection is sorely needed. There must also be a special focus on these industries as we want to be prepared if and when a second wave of Covid-19 hits. The buffer is also needed to cushion the next 12 months or so while the economy slowly picks up.” – June 7, 2020.