All-change at Malaysia Airlines from 1 July

Malaysia Airlines is laying off a third of staff and will cut fleet capacity by more than 10 per cent as it implements a state-led restructuring programme that includes aircraft and route reviews, employee contract negotiations.


All-change at Malaysia Airlines from 1 July


Malaysia Airlines is laying off a third of staff and will cut fleet capacity by more than 10 per cent as it implements a state-led restructuring programme that includes aircraft and route reviews, employee contract negotiations.

Owner Khazanah Nasional Bhd announced in late-March that by 1 July of this year, the airline will emerge as a new company in an attempt to put the old brand and its problems behind it, including two most recent tragedies— the disappearance of flight MH370 in March and the shooting down of flight MH17 over Ukraine in July of last year. The restructuring will be the first undertaken by the airline since the carrier became private in December.

By the end of this year, the carrier plans to cut fleet capacity by more than 10 per cent in an effort to grow over the next fi ve years, focusing on its Southeast Asia and Asia-Pacific based routes.

European and Middle Eastern routes are being evaluated and fleets will be reassigned accordingly, said Kazanah.

Christoph Mueller, formerly of the Irish airline Aer Lingus, will join the newly restructured Malaysia Airlines’ company as chief executive-designate. Mueller will oversee the transfer of MAS’ operations, assets, liabilities and “selected employees” to Malaysia Airlines Berhad (NewCo) on 1 July.