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MAS to cut 6000 staff as government takes over

September 1, 2014 Aviation, Headline News No Comments Email Email

egtmedia59Reports that Malaysia Airlines is to cut 6000 staff as part of recovery plan have been confirmed, along with suggestions that the airline will end up being owned by Malaysia’s government.

Khazanah Nasional, the Malaysian state investment company that owns 69% of the troubled airline company, will boost its stake to 100% ownership.

The cutback in staff numbers represents about 30% of the airline’s workforce of 20,000.

As well as becoming completely state owned, the carrier will see a new chief executive take the helm eventually – but the name Malaysia Airlines seems set to stay. Some analysts had suggested it should be changed after the disastrous and tragic losses of two B777-200s with all aboard, earlier this year.

The recovery plan will cost about 6 billion Malaysian ringgit (AUD 2 billion).

“The combination of measures announced today will enable our national airline to be revived,” the BBC quoted Khazanah’s managing director Azman Mokhtar as saying.

“Success is by no means guaranteed – 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.”

Khazanah plans to restore Malaysia Airlines’ profitability by the start of 2018 and then relist the airline’s shares on the stock exchange by the end of 2019.

Long-haul routes are likely to be slashed. Australian routes are being examined but some routes to Europe and China may go first.

Written by Peter Needham

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