KUALA LUMPUR: The termination letters for all the current employees of Malaysian Airline System Bhd (MAS) will be issued on June 1 under the corporate exercise where the new company (NewCo), MAB Airlines Bhd will take over the loss-making airline.
The NewCo will be ready for the migration of MAS’ operations, assets and liabilities on July 1, 2015.
According to MAS on Friday, the NewCo employees will start work on Sept 1, together with Christoph Mueller, who will assume the post of managing director and group chief executive officer (CEO), effective May 1.
“To affect the employee migration, NewCo will issue employment offer letters to selected MAS employees on June 1.
“On the same date, MAS will issue employment termination letters with a three-month notice to all its employees. This variation from the earlier schedule of April 1, 2015 has been approved by (its sole owner) Khazanah Nasional Bhd on March 20,” it said.
A total of 6,000 employees are expected to lose their jobs while the rest will be absorbed by the NewCo.
MAS under its restructuring scheme is supposed to axe 6,000 employees as part of Khazanah Nasional Bhd 12-point strategy to remake MAS.
The initial plan was for MAS to issue the letters this month and the new airline will take over the operations of MAS on July 1.
MAS said the process of identifying the pool of staff that meets NewCo’s requirements is underway, following the completion of a comprehensive talent assessment exercise in February.
Exiting employees will have access to the training and placement services provided by the Corporate Development Centre, which will be operational by the time of the issuance of the termination letters.
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