Following its announcement earlier today that it has suffered a loss of RM307 million/US$97 million (see here), Malaysia Airlines (MAS) has revealed that it will commence a RM6 billion (US$2 billion) recovery plan to help it return to profitability.
The drastic restructuring will see MAS cut 30 per cent of its workforce by 2018. This represents nearly 6,000 of its existing staff.
The plans have been set in motion by majority stakeholder Khazanah Nasional, which currently owns a 69 per cent stake in the airline and will soon take complete ownership (see here).
In addition, as reported previously by Business Traveller Asia-Pacific (see here), a new chief executive will be appointed as the incumbent Ahmad Jauhari Yahya looks set to be shown the door once his term expires next month.
Finally, many long haul routes will be slashed as the carrier looks to focus its efforts on its regional and domestic market. These are expected to include services to Germany and certain routes to China.
In a BBC article earlier today, Khazanah Nasional managing director Azman Mokhtar expressed his belief that the airline would find its feet again and that the cutbacks are neccessary.
“The combination of measures announced today will enable our national airline to be revived,” said Mokhtar. “While it is imperative that MAS as a critical enabler in national development is revived, public accountability for the use of the funds mean that it cannot be renewed at any cost’.
For more information, visit malaysiaairlines.com