nb_cid nb_clickOther -tt-nb this.style.behavior='url(#default#homepage)';this.setHomePage('http://www.aol.com/?mtmhp=acm50ieupgradebanner_112313 network-banner-empty upgradeBanner
14
Search AOL Mail
AOL Mail
Video
Video
AOL Favorites
Favorites
Menu

Malaysia Airlines to cut 6,000 staff in overhaul

By EILEEN NG



KUALA LUMPUR, Malaysia (AP) - Malaysia Airlines will cut 6,000 workers as part of an overhaul announced Friday to revive its damaged brand after being hit by double passenger jet disasters.

The staff reduction represents about 30 percent of its current workforce of 20,000. A search for a new CEO for the airline is underway.

Khazanah Nasional, the state investment company that owns 69 percent of the airline, said the overhaul includes the establishment of a new company that will take over the existing Malaysia Airlines business and its reduced staff.

The revamp and new investment in the carrier will cost about 6 billion Malaysian ringgit ($1.9 billion).

"The combination of measures announced today will enable our national airline to be revived," said Khazanah managing director Azman Mokhtar.

The airline will be taken completely under the wing of the government. Khazanah previously announced that it plans to take 100 percent ownership.

A substantial revamp has long been on the cards for Malaysia Airlines, which was struggling with chronic financial problems even before it was hit by the double disasters this year.

Investigators continue to scour the southern Indian Ocean for Malaysia Airlines Flight 370 which veered far of course while en route from Kuala Lumpur to Beijing on March 8 with 239 people on board. In July, 298 people were killed when Flight 17 was blasted out of the sky as it flew over an area of eastern Ukraine controlled by pro-Russian separatists.

The tragedies have scarred the airline's brand, once associated with high-quality service. Travelers on recent long-haul flights have posted photos on social media of nearly empty cabins and departure lounges. The airline says passengers fell 11 percent in July from the year before.

In releasing its latest quarterly financial result, a loss, on Thursday, Malaysia Airlines said the worst impact from the disasters will come in the second half of this year.

Khazanah said at a press conference that it has begun a search for a new chief executive for the airline, which is likely to be completed by the end of this year.

Current CEO Ahmad Jauhari Yahya will continue to head Malaysia Airlines until its new incarnation is established in July next year.

The state investment fund said it aims to restore Malaysia Airlines to profitability by the end of 2017.

Malaysia Airlines to Cut 6,000 Staff in Overhaul

Join the discussion

1000|Characters 1000  Characters
uriahheep7275 August 29 2014 at 9:38 AM

The best way to revamp your brand? STOP KILLING PEOPLE!

Flag Reply +2 rate up
1 reply
thedanemom uriahheep7275 August 29 2014 at 11:11 AM

Who did they " kill" ? We don't know for sure what caused the first flight to go down, and the second flight was shot down unexpectedly. Not really something you can plan for.

Flag Reply 0 rate up
dlnrjm August 29 2014 at 8:36 AM

The employees ALWAYS pay. This sucks.

Flag Reply +1 rate up
kmcc895370 August 29 2014 at 7:14 AM

Getting rid of 6'000 employees will sure stop highjackings and anti-aircraft missiles! yeah,right! Bas***ds!

Flag Reply 0 rate up
sachfoxo August 29 2014 at 11:13 AM

I have written Malaysia off . I erased them off my globe at home , they are one of the Deadliest country's that is Muslim. No education , a Puppet to all Terrorists , That was all planned by the Middle East. . That's why Australia threw them out of their country.

Flag Reply 0 rate up
lregan066 August 29 2014 at 10:55 AM

Flight

Flag Reply 0 rate up
lregan066 August 29 2014 at 10:55 AM

Whatever happened to Fight 370? Is everyone done with that?

Flag Reply 0 rate up
Bernie August 29 2014 at 10:13 AM

Air Malaysia will likely survive in the long run…. the key is time for healing and the continuance of the levels of service they are noted for. The biggest questions here are…. can they maintain those levels as a government run entity…. and will the severe staff cuts undermine the quality of service they are noted for?

Flag Reply 0 rate up
1 reply
Kristina Bernie August 29 2014 at 12:17 PM

Likely, unless there really were 6000 superfluous and unnecessary employees. Business models are always so wrong-sighted .. let's cut staff, and what will the improvements be for doing that beyond the short-term bottom line profit??

Flag Reply 0 rate up
John August 29 2014 at 10:13 AM

Will they discontinue flights to the middle of the Indian Ocean?

Flag Reply 0 rate up
fisherman695 August 29 2014 at 9:08 AM

6000 engine mechanics

Flag Reply 0 rate up
Kristina August 29 2014 at 12:15 PM

Gee, 6000 less people! Sounds like a wonderful way to improve service and efficiency and safety. Do you mean to tell me that there were 6000 superfluous and unnecessary employees???!!!

Flag Reply 0 rate up
aol~~ 1209600

Voting...

1414186580827

World Series

More From Our Partners