Malaysia Airlines to undergo urgent revamp

KUALA LUMPUR: Malaysia Airlines Bhd has confirmed it is embarking on an urgent restructuring of its business and capital structure as the Covid-19 pandemic is showing little sign of easing.

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.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Malaysia Airlines , airline , restructuring


Next In Business News

Matrix Concepts announces preview of latest Melbourne project
Poor skinny kid from Malaysia makes it really big
Brent could push past US$150/bbl if Russian oil exports shrink, BofA says
Indonesia to allocate about 1 million tonnes of palm oil for export
UK equities record best week since mid-March
Oil settles up ahead of US driving season
World stock markets rally, treasury yields fall on inflation data
Wall St Week Ahead-Stock rally fanned by hopes of Fed 'past peak hawkishness'
Embracing sustainability
Mortgage rates drop to shore up housing sector amid Covid woes

Others Also Read