Sat, Aug 30, 2014
Will Be De-Listed From Kuala Lumpur Stock Exchange
Troubled Malaysia Airline will make extensive route cuts and eliminate some 6,000 jobs in a major restructuring announced Friday by its majority shareholder.
USA Today reports that the employee reduction accounts for about 30 percent of the airline's total workforce. It also plans to focus on regional routes rather than the unprofitable long-haul international routes, according to Khazana Nasional, the Malaysian government's sovereign wealth fund.
The program was already under discussion before the airline suffered the loss of two of its Boeing 777 airplanes this year.
The airline will be nationalized and de-listed from the Kualua Lumur stock exchange by the end of the year. Khazanah reportedly plans to return a profitable airline to the exchange by 2017.
In a news release, Tan Sri Azman Hj. Mokhtar, Managing Director of Khazanah, said, “The combination of measures announced today will enable our national airline to be revived. While funds have been made available, they come with strict conditions, so as to ensure that MAS truly resets its business model and cost structures, in order to be truly sustainable. 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. The plan also calls for all parties to close ranks and work together to enable the permanent reconstruction of our national icon.”
(Image from file)
More News
Aero Linx: JAARS Nearly 1.5 billion people, using more than 5,500 languages, do not have a full Bible in their first language. Many of these people live in the most remote parts of>[...]
'Airplane Bounced Twice On The Grass Runway, Resulting In The Nose Wheel Separating From The Airplane...' Analysis: The pilot reported, “upon touchdown, the plane jumped back>[...]
"Burt is best known to the public for his historic designs of SpaceShipOne, Voyager, and GlobalFlyer, but for EAA members and aviation aficionados, his unique concepts began more t>[...]
"Polaris Dawn, the first of the program’s three human spaceflight missions, is targeted to launch to orbit no earlier than summer 2024. During the five-day mission, the crew >[...]
There Are SO Many Ways To Get YOUR Aero-News! It’s been a while since we have reminded everyone about all the ways we offer your daily dose of aviation news on-the-go...so he>[...]