Malaysia Airlines that was already losing money even before the two unfortunately incidents with MH370 and MH17 last year is trying to have a fresh start.
The airline will terminate all employee contracts (20,000) and rehire may be 12,000 of them the Singapore Straits times reports.
You can read the entire The Straits Times piece here of which below is an excerpt:
The termination is aimed at easing the migration of MAS into a new company, MAS Bhd, which will begin operations on Sept 1.
The appointment of administrator marks the beginning of the eventual end for MAS as an entity as Faiz’s job will be to clean up MAS for closure and transfer all the assets and liabilities to MAS Bhd, as provided for in the MAS Act 2015.
About two-thirds of the 20,000 staff will be offered jobs with new conditions.
It was reported earlier that 6,000 staff would be axed but sources now say that in effect, it is that 6,000 roles that could be cut and some of those roles could be done by more than one staff.
So sources say the final number of staff asked to go could be over 8,000, but in stages over a year.
“The 6,000 will be terminated at the same time, but some will be released in phases to manage the transition.
“Some will be offered short-term contracts in MAS Bhd,” said a source.
The Malaysia Airlines is trying to restructure itself to be more of a regional airline and not trying to compete with the likes of Singapore Airlines or Thai Airways.
The airline has already cut its Frankfurt route, but still continues to fly to London, Paris and Amsterdam in Europe. The airline is apparently trying to sell all/some of its A380 aircraft.
Let’s hope that they manage the downsizing well. I do like the Malaysia Airlines business class fares around the Asia that tend to be fantastic at times.