1. Malaysia Airlines — the country’s loss-making national carrier — is set to cut 30% of its entire workforce and de-list as part of a restructure that will cost $1.9 billion, Reuters has reported.
The airline’s majority investor, sovereign wealth fund Khazanah Nasional, said it will slash staff by 6,000 to 14,000 as part of a massive overhaul aimed at stopping the long-term losses, which have been exacerbated by two of the biggest aviation disasters of the year.
The overhaul, which will also see Malaysia Airlines de-listed from the Kuala Lumpur stock exchange by the end of the year, is intended to make the carrier profitable within three years, Khazanah said.
Announcing its sixth quarterly loss yesterday, the airline said the full financial impact of the disasters will only be seen in the second half of this year, Bloomberg reported.
4. Speaking to reporters in Kuala Lumpur, Khazanah Managing Director Azman Mokhtar said:
Recent tragic events and ongoing difficulties at MAS have created a perfect storm that is allowing this restructuring to take place.
We believe the 6 billion (ringgit, i.e. $1.9 billion) is not a bailout. We believe it will be recovered with re-listing.
- Around 100 people drowned this past weekend after two migrant vessels went down in the Mediterranean sea.
- People trolled the U.S. Central Intelligence Agency for tweeting elements of the historic Osama bin Laden raid in Pakistan five years ago.
- And elephants performed for the last time at Ringling Bros. and Barnum & Bailey after years of protest from animal advocates 🐘