Malaysia Airlines is believed to be considering laying off a third of its staff as part of its recovery plan following business losses and two devastating incidents in 2014.
As per a Reuters report, the airline is amid contract re-negotiations as well as fleet and route reviews as part of the state-led overhaul by owner Khazanah Nasional Bhd.
The update comes after the carrier was privatised following a 6 billion-ringgit (US$1.8 billion) bailout by the government in December.
Khazanah reportedly said that by July 1 the airline would emerge as a “new company”, with the old brand and its spate of issues to be put behind them moving forward.
The latest strategies outlined to re-vitalise the company include being on track for profitability by the end of 2017 and re-listed by 2020, is all part of the 12-point recovery plan according to the report.
MAS’ newly appointed chief executive designate, Christoph Mueller, former Irish carrier Aer Lingus boss, will be at the helm of the changes and will be evaluating the performance of its 14,000 employees and reviewing some 4,000-supplier contracts to meet “market-based requirements”, Khazanah said.
The airline will also cut capacity by more than 10% in 2015 and aim to increase by 5% annually over the next five years, focussing on Southeast Asia and the broader Asia-Pacific region, according to Khazanah, as per the report.
“It will review its European and Middle Eastern routes and “re-align” its fleet accordingly,” the report stated.
The airline’s fleet will be comprised of Boeing 737-800s, and “mid-sized wide-body planes” like Airbus Group NV’s A330s or A350s, according to Reuters and larger aircraft like Airbus A380s could potentially be sold or rented out.
Image: Rediff
