29 Aug, 2014
RM6 billion recovery plan unveiled for Malaysian Airlines
KUALA LUMPUR, Aug 29 (NNN-Bernama) – The Malaysian government investment arm Khazanah Nasional has unveil a RM6 billion recovery plan for ailing Malaysia Airlines (MAS).
Khazanah Nasional, which has a majority share in the airline has outlined a 12-point enabling plan for returning MAS to sustain profitability and revive Malaysia’s national flag carrier.
The 12-point package of measures, which also involves a comprehensive overhaul of MAS, will enable the airline to achieve sustained profitability within 3 years of delisting, by end-2017.
The plan also involves the creation of a new company (NewCo), which will see further Khazanah investment into NewCo amounting up to RM6 billion on a staggered and conditional basis over a 3 year period.
Here are some highlights of the plan announced Friday:
The Malaysian cabinet & board of MAS have this week given their approval for Khazanah Nasional’s RM6 bln recovery plan for the ailing national carrier.
Khazanah Nasional still searching for both local & foreign candidate to be new MAS CEO.
MAS is targeted to return to profitability within three years of delisting and to relist within 3 to 5 years, that is between end-2017 and end-2019.
MAS employees to receive letters about the status of their employment & VSS offers beginning next year.
Present CEO Ahmad Jauhari Yahya will continue to lead OldCo as the group CEO during this period until July 1 2015.
3,500 MAS employees to be offered jobs in companies under Khazanah Nasional Group after re-skilling & redeployment.
New MAS entity under “Newco” will take off on July 1 2015
MAS Recovery Plan would see a right-sizing the work force to an estimated 14,000 employees at NewCo.
The national carrier saw its net loss sink to RM304.04 million for the second quarter ended June 30, almost double the RM175.98 million loss posted a year ago. This is its sixth straight quarter in the red since end-2012. — NNN-BERNAMA
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