In a statement issued today, the flag carrier said that while its long-term business plan (LTBP) launched in early 2019 had resulted in significant operational improvements, the Covid-19 pandemic has caused unprecedented lockdowns across the globe.
"The deep impact of the prolonged Covid-19 crisis has necessitated MAG to take drastic steps in revising its LTBP further to ensure the group’s relevance and survival.
"This includes reworking its network and fleet plans, to be able to cope with not only the uncertain and volatile aviation landscape, but also likely softer traffic demand for the foreseeable future,"it said.
Since March this year, the airline has embarked on cost-cutting initiatives and conserved cash, which included the introduction of extensive salary cuts for the entire management team and pilots.
However, it said the resurgence of coronavirus cases, the absence of a vaccine and tight border restrictions in key markets will hamper the return of international leisure and business travel demand in the next couple of years.
The success of the restructuring plan highly depends on the individual contributions of all the relevant stakeholders, failing which the group will have to take more drastic measures, it said.
"As a national carrier, it is MAG’s intention to ensure some level of continuous connectivity for its passengers; and to minimise impact on the livelihood of direct and indirect workforce and industries dependent on its operations.
"Being an economic enabler to the country, MAG is cognisant that any action taken by the group will have a greater impact to the broader aviation industry and to the nation.
"Hence it is committed to ensure that its restructuring exercise is duly implemented in a fair manner through any form of mechanism that is appropriate," it added.