Malaysia Airlines will cut 6,000 workers and remove itself from the Malaysian stock exchange as part of a $1.9bn overhaul to revive its damaged brand after being hit by double passenger jet disasters.
Naijalog recalls that the airline suffered the two worst disasters in modern aviation only five months apart.
A search for a new chief executive is also underway, but there is no move to change the airline’s name, which some branding experts had said was necessary for a successful makeover.
Parts of changes that will take effect as announced by Khazanah Nasional, the state investment company that owns 69 percent of the airline, include the establishment of a new company that would take over the existing Malaysia Airlines business and its reduced staff.
Malaysia Airlines will also review its routes, after flying with high numbers of empty seats on many of its planes. The airline has been adding flight capacity and slashing fares to get customers aboard, meaning overall passenger numbers have only dropped by 0.3% year on year.
Revenue dropped 5% in the three months from April to June even as available seats rose 9% from 2013. The full effect on sales has yet to be seen as the airline offered full refunds to passengers who had booked to fly later in the year after the shooting down of MH17.