Letters of redundancy were issued to the affected employees during the week.
Simon Tumba, media consultant to the airline, confirmed the development in a statement, saying affected workers would be paid their pension and gratuity.
Before it suspended flight operations in September, the company had about 1,500 workers on its payroll.
Tumba said the airline had been grappling with huge and unrealistic personnel cost as well as other operational challenges, worsened by lack of enough aircraft to keep all the workers meaningfully engaged.
“The issuance of notification of redundancy is a business decision that will ensure Aero’s survival,” he said.
“The current situation where over a thousand people are basically not engaged due to lack of serviceable aircraft is not sustainable for the airline.
“The huge monthly salary associated with a bloated workforce will eventually kill the airline, which is not the intention of the current government.”
According to him, Aero Contractors currently has aircraft-to-employee ratio of 1:500, which analysts believe is perhaps the worst in the history of global airline industry.
Edited from The Cable