Malaysia Airlines to Receive $2 Billion Bailout, Make Substantial Cuts in Workforce

By Paul Riegler on 29 August 2014
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DSC_0417Malaysia Airlines announced plans to cut 6,000 jobs, roughly 30% of its workforce, on Friday in concert with a planned bailout from the Malaysian government.

The airline will receive almost $2 billion, according to the restructuring plan announced Friday.  Malaysia Airlines is still reeling from the unresolved disappearance of Flight 370 over the southern Indian Ocean in March and the more recent downing of Flight 17 over Ukraine last month, and losses at the carrier have mounted as fewer travelers choose to fly on it.

Khazanah Nasional, the government’s investment arm, will provide up to six billion ringgit ($1.9 billion) to the airline with “strict conditions,” according to Azman Mokhtar, who in a statement said that the success of the restructuring “is by no means guaranteed.”  Khazanah Nasional has a controlling interest in the airline.

The airline plans to launch a global search for a new chief executive and said there will be “significant changes to leadership.”  It will also relocate its headquarters from a suburb to Kuala Lumpur International Airport.

(Photo: Accura Media Group)

Accura News

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