Malaysia’s state investment fund Khazanah Nasional Berhad has announced a 12-point enabling plan to put the struggling Malaysian Airline System (MAS) to sustained profitability.
This is an attempt to ward off bankruptcy following two air tragedies involving the airline.
The plan involves downsizing the workforce by 30%, which could mean a cut of 6,000 jobs, reducing the route network, replacing the CEO and shifting the operations from Subang to Kuala Lumpur International Airport.
Khazanah has also proposed the delisting of MAS.
The fund feels that the current plan will enable the airline to move towards profitability by the end of 2017.
As part of the plan, a new company will be established that will house the carrier once it completes delisting by the end of this year. The plan also looks into the possible migration of the right-sized workforce, work practices and contracts into the new company.
Khazanah will also provide an investment of MYR6bn ($1.6bn) on a strictly conditional basis.
A total of MYR1.6bn ($505m) will be spent on restructuring and retrenchment works, while MYR3bn ($948m) will be invested into the new company.
Until the new company begins operations in July 2015, MAS will be led by its current CEO, Ahmad Jauhari Yahya.