Air Transport World

Malaysia Airlines: article)

The good news for MAS is that it no longer will have to compete with lower-cost AirAsia for passengers on its loss-making domestic routes, most of which are public service obligations. The bad news is that a major downsizing will accompany a government-supervised agreement announced in March under which MAS will hand over 96 routes to AirAsia while continuing to operate on 19 trunk lines. The domestic fleet will shrink from 40 to 21 with 19 737-300s and F50s being removed.

In late May, the carrier launched a voluntary buyout scheme targeting 5,000 of 18,000 workers funded with MYR850 million. Earlier reports had up to 6,500 staff being laid off or leaving. The route handovers will begin in August at which time the government will end its subsidy on many of those services. …

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