AirAsia gets final shot to overturn RM147,400 payout to ex-pilot

The Federal Court of Malaysia has granted AirAsia leave to appeal a ruling that favored a retrenched co-pilot. The case will address significant legal questions regarding corporate group financial liability and retrenchment procedures.
Why it matters
The outcome will set a legal precedent for how corporate groups handle layoffs and whether they can use consolidated group losses to justify firing employees at the subsidiary level.
AirAsia Bhd will pose seven questions of law to the Federal Court, including whether a company can rely on its corporate group's financial position to justify retrenchment, or whether the actual employing company's financial standing must be considered. (AirAsia pic)
PUTRAJAYA: AirAsia Bhd has secured a final chance to challenge a Court of Appeal ruling that awarded RM147,400 to a former co-pilot who was retrenched during the Covid-19 pandemic.
In a split decision, the Federal Court today granted AirAsia leave to appeal after two of the judges on the three-member panel found that seven questions of law warranted consideration.
Justice Rhodzariah Bujang, who chaired the bench, and Justice Lee Swee Seng allowed the application, while Justice Azimah Omar dissented.
AirAsia's lawyer Wendy Lam said the questions involved important legal principles and matters of public interest.
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