Friday 29 Mar 2024
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(June 3): Malaysia Airlines (MAS) will stop flying to three Asian cities in the coming weeks as part of its rationalisation exercise, The Star reported today.

The English daily said the cancelled routes were to Kunming in China, Krabi (Thailand) and Cochin (India). This follows the national carrier's move to suspend flights to Frankfurt, Germany, last week.

MAS owner Khazanah Nasional Berhad said the airline had taken steps to suspend non-profitable routes, and was considering further route rationalisation.

“Moving forward, the national carrier will be principally commercial while supporting national development objectives, provide broad connectivity via partnerships and offer refreshed premium products,” The Star quoted Khazanah as saying in its third quarterly review of MAS’s restructuring.

Full-fledged international carrier MAS Berhad will take over MAS operations from September 1.

The Star also said the new airline's network would serve Asean, China, India and domestic markets, with services to key international destinations in Japan, South Korea, Australia, New Zealand, Britain and Saudi Arabia.

Potential partnerships are also being explored to enable it to expand its reach into Africa, the United States and Europe.

The airline began sending out termination letters to some 20,000 staff members on Monday, but will offer re-employment to about 14,000.

Quoting sources, The Star said the the first batch of nearly 1,000 staff left yesterday and 4,000 others were expected to leave by the end of August.

Payments and benefits to employees both leaving the carrier and rejoining MAS will cost Khazanah up to RM1.5 billion.

Khazanah unveiled a 12-point comprehensive restructuring exercise for the flag carrier last year to return the airline to profitability, at the earliest by 2017.

Under the plan, Khazanah will invest up to RM6 billion on a staggered and conditional basis over three years.

The plan also saw the setting up of a new company to house the carrier, rationalise routes, renegotiate current contracts, cut 30% of the 20,000-strong workforce and move its operations from Subang to the Kuala Lumpur International Airport.

The carrier had undergone three restructuring exercises since 2007 which failed to yield any results due to a bloated workforce, changing market demands, stiff competition and high overhead costs.

MAS’s ailing condition was further affected by two major aviation disasters last year. Flight MH370 from Kuala Lumpur to Beijing vanished in March with 239 people on board, while flight MH17 from Amsterdam was shot down over Ukrainian air space on July 17, killing all 298 people on board. – The Malaysian Insider

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