During the Chinese “May Day” holiday, which is supposed to be a peak season for the aviation industry, Xingfu Airlines announced a “shutdown” – canceling all flights before the May Day holiday. This local airline from Shaanxi has been deeply mired in debt for many years, with employees being owed wages for a long time. This has led to a situation where former million-yuan-salary captains and ordinary employees alike have resorted to driving for ride-sharing services or delivering takeout to make ends meet. The contact person’s phone has become a “hotline” for various debt collection calls.
Xingfu Airlines is headquartered in Xi’an, Shaanxi, and the company once had over 1,000 employees. Xingfu Airlines is not a publicly traded company and does not proactively disclose financial data. In September 2015, Donghang Airlines listed Xingfu Airlines’ equity on the Beijing Property Rights Exchange. At that time, Xingfu Airlines’ operating data was disclosed to the public for the first time. In 2014, its operating losses were 214 million yuan, with a net loss of 152 million yuan and an asset-liability ratio of 110%. By July 2015, the asset-liability ratio had increased to 118%.
Recently, several mainland media outlets reported that Xingfu Airlines has already canceled all flights from April 28 to 30. Some employees were informed not to come to work on April 28. Employee Chen revealed that their department did not receive the flight schedule, and the company did not explain the specific reasons.
On April 30, Phoenix News reported that many passengers who had booked flights for April 29 or the May Day holiday period were suddenly notified of flight cancellations. They are still waiting for information on whether they will receive refunds and specific dates for the refunds. An employee of Xingfu Airlines confirmed that the news of all flights being grounded is true.
Regarding the issues of Xingfu Airlines canceling all flights before May Day and employee wages, a customer service representative from Xingfu Airlines responded, saying, “The customer service center only deals with ticketing operations, and we are temporarily unable to respond to matters beyond ticketing services.”
In the early hours of the winter morning at 3 a.m., while the whole city was still asleep, Zhu Sheng (pseudonym) was already riding an electric scooter through the streets. Once a pilot, he now shuttles on the ground, working part-time delivering takeout to support his family after work.
For four years, Zhu Sheng has not flown any flights, although his pilot’s license is still valid. Xingfu Airlines’ aircraft qualifications have expired, and various training programs have gradually stagnated.
“My youth has been wasted, and my passion for flying has gradually been worn out,” Zhu Sheng described his life over the past four years. Since last June, his wages at Xingfu Airlines have been like dropping a stone into the sea, with no response. What’s even more heartbreaking is that contributions such as social security and provident funds have not been paid for three years. Now, as Xingfu Airlines is deeply troubled by financial difficulties, shareholders are passing the buck to each other, and the issue of employee salaries is being passed around like a football.
Zhu Sheng mentioned that his wages were initially paid in full, then only partially, and for several months, no money was paid at all. Contributions to social security and provident funds were not made, and now it’s been nearly a year since he received any wages. Without a fixed income and basic social security, he has had to rely on various part-time jobs to support his family, often working all night delivering takeout, sometimes tutoring, sometimes driving for ride-sharing services, just to make ends meet. Some months he can earn seven to eight thousand yuan, but sometimes as little as two to three thousand.
Similar to Zhu Sheng, Xingfu Airlines employee Sui Bo (pseudonym) has also taken a similar path. He revealed that even a former captain with a million-yuan salary has now joined the ranks of ride-sharing drivers. The elite in the cockpit in the past now have to use their spare time commuting to become part-time drivers amidst the bustling streets, with Sui Bo mentioning his extra income of 1,000 yuan per month, although not much, has become crucial for supporting his family.
“To support our families, we, colleagues, are all showing our abilities in different ways, some deliver takeout, some drive for ride-sharing services, and some have sought other ways of earning a living. For those young colleagues who just graduated after 2000, they mainly rely on family support to make a living,” Sui Bo said. “The company has run out of money, and the top leaders’ contracts are due to expire this June. It’s said they may move to other companies. Our immediate concerns as ordinary employees are being passed around like a football, and we don’t know what the future holds.”