Malaysia Airlines will cut seat capacity, review its fleet and routes, and renegotiate staff contracts as part of a major restructuring programme.
The airline is aiming to emerge as a new company on July 1, owner Khazanah Nasional said.
It is the first announcement by the state investment firm since it took control of the troubled airline last year (see news, November 6), after it was hit by two tragedies – the disappearance of flight MH370 in March 2014 and the tragic shootdown of MH17 over Ukraine (see news, July 17).
Khazanah has outlined a 12-point recovery plan targeting profitability by the end of 2017 and re-listing by 2020, reports Reuters.
It wants to cut capacity by 10 per cent and focus "on more profitable domestic and regional routes".
Khazanah said in a statement: "This short-term network consolidation is expected to enable a strengthening of the airline's financial position."
It added that routes flown to the Middle East and Europe, which include London, Amsterdam and Paris, were being "carefully evaluated" and could be discontinued if they did not contribute to group profitability.
In December, MAS appointed former Aer Lingus boss Christoph Mueller as its new CEO.