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Urgent restructuring underway for cash-strapped Malaysia Airlines
Malaysia Airlines says it needs an urgent restructuring to survive the Covid-19 crisis.
There is scant evidence of a recovery just around the corner and the airline had to make drastic changes to its existing long-term business plan.
It has started by reaching out to creditors, banks and aircraft lessors to defer some payments.
"The deep impact of the prolonged Covid-19 crisis has necessitated Malaysia Aviation Group to take drastic steps in revising its long-term business plan further to ensure the group’s relevance and survival," it said in a statement.
It will readjust its network and fleet plans.
The airline had already cut salaries for management and pilots, and reduced staff costs through voluntary unpaid leave.
The airline’s latest long-term business plan was launched in early 2019 well before the Covid-19 pandemic upended global air travel.
It admits more extreme rationalisation may be needed to get through the crisis.
It has struggled for the past six years since two air disasters in 2014.
It was taken over by Malaysia’s sovereign wealth fund Khazanah in order to completely restructure the business.
It dropped most long haul routes to cut costs and made big job cuts several years ago, but has still struggled for years.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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