Home / Companies / Malaysia Airlines said to mull job cuts, order review, new CEO

Kuala Lumpur: Malaysian Airline System Bhd is considering job cuts, a review of aircraft orders and replacing its chief executive officer (CEO) 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 on Tuesday, 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 CEO 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 on 28 August, is struggling to stem losses and repair its image after the downing of Flight MH17 in Ukraine last month compounded woes from the disappearance of another Flight MH370 in March. Bloomberg

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