In its plans to restructure the company, Malaysia Airlines to slash 6,000 jobs.
As part of a 12-point restructuring plan revealed by the strategic investment fund of the Government of Malaysia, Khazahnah Nasional, Malaysia Airlines (MAS) will slash 6,000 jobs. The plan, unveiled on August 29, 2014, has been devised to achieve sustained profitability for the company by 2017 end and will cost $1.9 billion.
By the end of 2014, MAS will be de-listed from the Kuala Lumpur exchange. The government investor stated that the cost of restructuring will be recovered once the airline will be re-listed.
Due to stiff competition from emerging budget airlines such as AirAsia, MAS has suffered losses for three straight years. Currently, Khazanah has a 69 percent stake in the fledgling airline and has so far invested over 5 billion Ringgit in it over the past decade.
Through equity/debt swaps, the investor plans to bring down the net gearing of the carrier and will also review all supply contracts. For now, MAS will be focusing on its regional flight network and discontinue unprofitable international routes to China and Europe, in order to improve revenue.
As per Khazahnah, MAS will retain its global flight connectivity through code-sharing and Oneworld, the alliance that brings together 15 of the world’s leading airlines.