Sneeze Lam 0 Report post Posted March 29, 2006 (edited) Malaysia Airlines to lay off 6,500, cede most of domestic network to AirAsia Wednesday March 29, 2006 Malaysia Airlines delivered the news its employees feared (ATWOnline, March 24), announcing it will abandon all but 19 domestic routes to AirAsia, take 19 aircraft out of service and lay off approximately 6,500 employees, or about 28% of its workforce.AirAsia will take over the remaining 96 routes and compete with MAS on the other 19, giving passengers the option of choosing a full-service or a low-cost carrier. The Malaysian government said it will stop subsidizing MAS from Aug. 1, according to press reports, although the carrier said in a statement that the government will compensate it for costs incurred in the restructuring of its domestic network. The government decided two weeks ago that MAS, which operates domestic services on behalf of Penerbangan Malaysia Berhad, will retain several popular routes while ceding most services to AirAsia. MAS has been losing money on its domestic routes but said when it unveiled its Business Turnaround Plan (ATWOnline, March 6) that it did not expect to make a definitive decision on layoffs until 2007. "Our original intention was to take back the P&L for the domestic sector from PMB in 2007 and build this out as a viable business unit. Having said that, we understand the government's vision to establish two national champions in the international aviation sector, one in full service and the other in low cost," MAS MD Idris Jala said. The airline said each of the 19 routes it will continue to operate generates an annual average of 15,000 international connecting passengers and/or 13,000 business/first class passengers. It will operate seven routes between Kuala Lumpur and peninsular cities, six between KLIA and Sabah/Sarawak and six within Sabah and Sarawak. It said it has a "free hand" from the government to control capacity, frequency and pricing. by Brian Straus Edited March 29, 2006 by Sneeze Lam Share this post Link to post Share on other sites
Arimi Raldi 0 Report post Posted April 2, 2006 airasia is a part of MH,like silk in SQ?i don't know about it. Share this post Link to post Share on other sites
Seth K 3 Report post Posted April 2, 2006 Air Asia is not part of MH....they just have some cooperation. Share this post Link to post Share on other sites
Azuddin 1 Report post Posted April 2, 2006 as far as i know, Air Asia is cooperation of 3 country, Malaysia, Thailand and the newest is Indonesia. Azuddin Share this post Link to post Share on other sites
Seth K 3 Report post Posted April 2, 2006 In many years, we can see SIngapore AK, Cambodia AK, Vietnam AK, Myanmmar AK, Laos AK, hope fully Australian AK..............hehe Share this post Link to post Share on other sites
Kelvin B 0 Report post Posted April 3, 2006 In many years, we can see SIngapore AK, Cambodia AK, Vietnam AK, Myanmmar AK, Laos AK, hope fully Australian AK..............hehe Singapore AK ???? Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted April 3, 2006 as far as i know, Air Asia is cooperation of 3 country, Malaysia, Thailand and the newest is Indonesia. Azuddin Air Asia is not a co-operation of 3 countries. However, AK M'sia has associate companies in those countries that hold separate licenses but carry virtually the same branding. Share this post Link to post Share on other sites
Rozhan 0 Report post Posted April 3, 2006 (edited) Read in Bernama that MAS staff are going on a 'black armband' campaign. Wonder if it has started. Edited April 3, 2006 by Rozhan Share this post Link to post Share on other sites
