▲ Up
12:44 30-09-2016
MAIN АКИpress CA-News
About us On-line subscription
Malaysia Airlines to cut 6,000 jobs off after 2 major tragedies

Bishkek (AKIpress) - plane crash Malaysia Airlines will slash nearly a third of its 20,000 workforce and cut back its global route network as part of a radical 6 billion ringgit ($1.9 billion) restructuring following the devastating impact of two jetliner disasters.

The 42-year-old company will be de-listed by the end of the year under the broad revival plan announced by state fund Khazanah Nasional on Friday that aims to bring long-elusive efficiency and global standards to the loss-making carrier.

The 6,000 job cuts were higher than expected by the industry and mark a painful new blow for staff after a traumatic year for the national flag-carrier and the Southeast Asian country. Khazanah, which owns a majority stake in MAS, said it would invest in "re-skilling" those who lose jobs and pledged to set up a panel to improve often rocky relations between unions and management.

"Recent tragic events and ongoing difficulties at MAS have created a perfect storm that is allowing this restructuring to take place," Khazanah Managing Director Azman Mokhtar told reporters in Kuala Lumpur.

"We believe that the 6 billion is not a bailout, we believe it will be recovered with re-listing," he said.

Khazanah, which currently holds a 69 percent stake in MAS, will take 100 percent ownership when the carrier is de-listed. The state fund said this month that it would pay 1.4 billion ringgit to buy out minority shareholders.

Under the restructuring plan, which was approved by Malaysia's cabinet this week, MAS' assets and liabilities will be transferred to a new company with Khazanah injecting up to 6 billion ringgit, Reuters reported Friday.

Khazanah aims to return MAS to profit by 2017, and re-list the airline within five years, by which time it would be a more regionally focused airline "with lower cost structure and greater emphasis on revenue yield management," the state fund said in a statement.

An international search for a new chief executive was underway, Khazanah said, and the current CEO Ahmad Jauhari Yahya would stay on until July next year.

Khazanah, which has injected more than 5 billion ringgit into MAS over the last 10 years, said its new fund injections would be strictly tied to the new company meeting performance targets.

"Success is by no means guaranteed," Khazanah said.

Airline industry players said the revival plan appeared to be far more comprehensive and radical than several others that have been announced since MAS began struggling in the late 1990s after a period of rapid growth.

"The plan that has just been announced is comprehensive, credible and adequate even if painful for MAS staff and other stakeholders," said Bertrand Grabowski, DVB Bank's managing director in charge of aviation. DVB is a banker to MAS.

"It is comprehensive because it touches all the key weaknesses that the airline has not being addressing for years - an overstretched network and fleet in an ever more competitive environment, short haul and long haul."

17:26 29.08.2014
12:38 No way of reducing electricity tariffs in Kyrgyzstan this year, energy committee head says12:29 Ashgabat hosts Uzbek Cinema Days12:09 Tajik Ambassador presents credentials to President of Poland11:55 Nazarbayev checks construction of longest bridge in Central Asia11:41 Interim president Shavkat Mirziyoyev sends condolences to Israli leadership over death of ex-president11:25 Kyrgyzstan imports 147.1 mln m3 of natural gas in 201611:24 Rahmon, Foreign Minister of Uzbekistan discuss Tajik-Uzbek relations11:12 Hoboken train crash in New Jersey kills 1, unjures 11411:00 SDPK faction asks Constitutional Chamber to check constitutionality of referendum bill10:57 Kyrgyzstan listed among countries with decreasing infant mortality — UNICEF10:57 Number of China-Europe container trains transiting through Kazakhstan has increased more than twice10:50 World leaders gather in Israel for Shimon Peres funeral10:48 Referee from Kyrgyzstan to officiate final match of FIFA Futsal World Cup in Colombia10:31 Minister Boronov partakes in meeting of CSTO Emergency Situations Council in Yerevan10:20 EU ready to provide 36 million Euros grant for education sector reform in Kyrgyzstan10:19 Afghanistan Ambassador finishes his diplomatic mission in Kyrgyzstan10:19 Kazakhstan attracts over $2.5bn net FDIs in manufacturing industry in 201610:10 Another bike ride to take place in Bishkek on October 210:06 President Rahmon, CSTO Secretary General express concern over growing threat of terrorism10:05 National Bank of Kyrgyzstan buys $10mln on Sept.29
+8° C
+18° C
+15° C
+23° C
+20° C
+15° C
exchange rates

© AKIpress News Agency - 2001-2016. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75