We wouldn't be surprised to see Malaysia Airlines undergo a complete rebranding in the wake of two back-to-back disasters. These are likely the first steps in the company's overhaul.
Malaysian Airline System Bhd. is considering job cuts, a review of aircraft orders and replacing its chief executive officer after the national carrier suffered two disasters this year, people familiar with the plan said.
The airline’s parent, sovereign wealth fund Khazanah Nasional Bhd., will discuss the proposals tomorrow, which also include cutting some routes, one person said, asking not to be identified as the discussions are private. The carrier may need to lay off between 3,000 to 4,000 people, a second person said. The carrier had 19,577 employees at the end of last year, according to data compiled by Bloomberg.
Khazanah is also talking to as many as three people as possible candidates to replace Malaysia Airlines Chief Executive Officer Ahmad Jauhari Yahya, whose term is due to expire in mid- September, one of the persons said.
The restructuring measures and Khazanah’s offer earlier this month to buy out minority shareholders are part of the plan to revive the Subang, Malaysia-based airline. The carrier, which will report earnings Aug. 28, is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March.
With assistance from Kyunghee Park in Singapore.
To contact the reporter on this story: Elffie Chew in Kuala Lumpur at email@example.com To contact the editors responsible for this story: Anand Krishnamoorthy at firstname.lastname@example.org; James Regan at email@example.com.
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Photo Credit: Malaysia Airlines aircraft on the runway. Reuters
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