As part of its recovery plan, Malaysia Airlines will be cutting 6,000 jobs from it’s 20,000-strong workforce.
The news comes as the airline scrambles to find its footing after two tragedies this year; in March, flight MH370 went missing, and in July, flight MH17 was shot down over Ukraine.
At a press conference today, AP reported Khazanah Nasional, a state investment company which owns 69% of the airline, will be investing around RM6 billion (S$2.37b) to support its overhaul and revamp.
“The combination of measures announced today will enable our national airline to be revived,” Khazanah’s managing director Azman Mokhtar, said.
Khazanah also announced it is still in the process of identifying a new CEO for the airline, which it aims to do before the end of this year.
The current CEO, Ahmad Jauhari Yahya, will remain in his position until July next year.
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Malaysia Airlines has said its worst financial performance will be the second half of this year. The company just reported a second quarter net loss of RM307 million (S$121m).
“We operate in a harsh business environment of stiff competition from regional and global carriers and high operational costs,” said Ahmad Jauhari.
“Coupled with the impact of the two tragedies which have damaged our brand, the need to restructure the company was accelerated. The full financial impact of the double tragedies of MH370 and MH17 is expected to hit Malaysia Airlines in the second half of the year.”