Malaysia Airlines Bhd is inviting at least 14,000 employees to join the new company formed as part of a corporate revamp as the carrier seeks to return to profitability.
The old structure, Malaysian Airline System Bhd, will cease operations in August and selected assets and liabilities will be transferred to the new company.
The carrier, which has about 20,000 workers, said turnaround plans for this year include so-called capacity rightsizing, eliminating sources of losses, and renegotiating key contracts, according to emailed presentation slides today.
The new company will reduce capacity and expand its more profitable domestic and regional routes in Asia Pacific, parent and sovereign wealth fund Khazanah Nasional Bhd said in March.
In August, Khazanah announced plans to cut 6,000 jobs after the carrier amassed more than RM4.9 billion in losses since the start of 2011. Khazanah has committed to invest RM6 billion to restructure the airline after taking it private in a RM1.38 billion buyout. – Bloomberg