The Bloomberg Report
Malaysia Airlines (MAS) is considering job cuts, a review of aircraft orders and replacing its chief executive officer (CEO) after the national carrier suffered two disasters this year, people familiar with the plan said.
The airline’s parent, sovereign wealth fund Khazanah Nasional Bhd, will discuss the proposals tomorrow, which also include cutting some routes, one person said, asking not to be identified as the discussions are private. The carrier may need to lay off between 3,000 to 4,000 people, a second person said. The carrier had 19,577 employees at the end of last year, according to data compiled by Bloomberg.
Khazanah is also talking to as many as three people as possible candidates to replace Malaysia Airlines chief executive officer Ahmad Jauhari Yahya, whose term is due to expire in mid- September, one of the persons said.
The restructuring measures and Khazanah’s offer earlier this month to buy out minority shareholders are part of the plan to revive the Subang, Malaysia-based airline. The carrier, which will report earnings on Aug 28, is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March.
Dato Dr Jacob George’s response in the media today:
‘Here we go around the mulberry bush so late, despite MH370, 17 other near misses and unstoppable bleeding and alleged abuse – without again acknowledging the many systemic problems and institutionalized weakness of the entire business module and structure! Changing one man at the top not the solution – even a 5 year old knows that!’