Aurora: The Pandemic Within DOI: https://doi.org/10.33093/ijomfa.2021.2.1.5

Abstract

Aurora Layar Group (Aurora) had been experiencing losses for three consecutive years since 2017. Among factors contributing to these losses were high depreciation due to high capital expenditure and recognition of impairment losses. However, Aurora managed to reduce its losses from RM252 billion in 2017 to RM79.5 billion in 2019. Unfortunately, the Covid-19 pandemic had hammered many industries worldwide including Aurora, in the travel, leisure and hospitality sector. The implication from the restrictions on business operations due to the Covid-19 pandemic on Aurora was evidenced by its reported losses of RM371.3 billion in the first six months to June 2020 during which most of its cruise operations suspended since the start of the Covid-19 pandemic. The reported losses were extremely higher compared to the first six months to June 2019 of RM28.3 billion. While many cruise companies globally fighting for survival, the Deputy CEO of Aurora, Miss Salina Hasan, tendered her resignation. In May 2020, the Chairman and CEO, Tan Sri Salmah Ali, had pledged 60 per cent of her shares in the company as collateral for loans. The decision was made a day after Aurora decided to suspend all payments to creditors.