Thursday 28 Mar 2024
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KUALA LUMPUR (June 10): Malaysia Airlines (MAS) will become an entirely new entity and will honour the tickets sold by the current company, chief executive Christoph Mueller has confirmed.

Frequent flyer miles from MAS will also be honoured by the new company.

The BBC reported today that Mueller said the transition would be an "orderly process".

"We will leave the old Malaysian airlines behind," Mueller told the BBC.

Mueller, who took over as MAS CEO in May ahead of a massive restructuring, previously said the airline would cut 6,000 jobs and was “technically bankrupt”.

The new firm will also take over compensation obligations from the old MAS.

In 2014, MAS lost two planes, Beijing-bound MH370 and Kuala Lumpur-bound MH17. MH370 is yet to be found to date.

Mueller said it would be "difficult to predict" how fast the rebranded airline could turn around its fortunes, having bled money for years now.

Although he would not say whether the airline would withdraw from some costly long-haul flights, Mueller assured that its new schedule would be announced "in a couple of weeks".

Sovereign wealth fund Khazanah Nasional Berhad took full stake in MAS last year and took it private in a bid to restructure it.

On June 1, 2015, MAS began a significant new phase of its restructuring programme in rightsizing its workforce to match the operational requirements of the new airline, Malaysia Airlines Bhd (MAB).

The transformation to create an ongoing, sustainable airline requires a smaller workforce than that currently supported by MAS.

 

 

 

 

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