Friday, August 29 09:40:34
Malaysia Airlines , the country's loss-making flag carrier, will cut 30 percent of its workforce as part of a sweeping restructuring that will cost 6 billion ringgit ($1.90 billion), majority investor Khazanah Nasional said.
The carrier will slash its staff by 6,000 to 14,000 as it takes steps to stem long-running losses worsened by two aircraft disasters this year, the state fund said in a statement on Friday.
Malaysia Airlines will be de-listed from the Kuala Lumpur exchange by the end of 2014, Khazanah said, adding that it aims to return the carrier to profitability within three years of the de-listing.
"Recent tragic events and ongoing difficulties at MAS have created a perfect storm that is allowing this restructuring to take place," Khazanah Managing Director Azman Mokhtar told reporters in Kuala Lumpur.
"We believe that the 6 billion is not a bailout, we believe it will be recovered with re-listing," he said.
Khazanah said in the statement that it plans to re-list the carrier in three to five years from now.
Ahmad Jauhari Yahya will stay on as chief executive until July next year, Khazanah said, adding that the search for a new CEO has begun.