28.10.2020 - 09:09 UTC
Malaysia Airlines (MH, Kuala Lumpur Int'l) parent Malaysia Aviation Group has offered early retirement to its employees as it continues negotiations with creditors and lessors, the national news agency Bernama reported after seeing an application form for the scheme.
The plan is being aimed at employees across the group, including subsidiaries Firefly (FY, Penang) and MASwings (MY, Kota Kinabalu) and is targeted at Malaysia-based employees aged 45 and over who have been in the company for at least 10 years.
The scheme appears to be “fair” in view of the group’s moves to pare down operations at Malaysia Airlines, Ismail Nasaruddin, president of the National Union of Flight Attendants Malaysia, told the news agency.
“The offer is only for three months’ salary, but if the outcome doesn’t match the numbers they are looking for then more drastic measures may be implemented such as termination or retrenchment,” he said.
Malaysia Aviation Group currently has a 12,000-strong workforce, according to Bernama.
As previously reported, the group has warned lessors...
16.10.2020 - 15:57 UTC
Firefly (FY, Penang) will commence jet operations from the first quarter of 2021, its parent Malaysia Aviation Group revealed on October 15.
It will add ten narrowbodies to its fleet in stages to serve the domestic, ASEAN, and Asia Pacific markets out of its Penang base in the north of the Malaysian peninsula, “to meet demand from the northern region.”
Firefly, which currently operates a fleet of twelve ATR72-500 turboprops, “will be complementing sister company Malaysia Airlines in serving the leisure market while diversifying its base connecting secondary cities in Malaysia to East Malaysia, Thailand, Indonesia, and Singapore,” Izham Ismail, group chief executive, outlined.
“This is in line with the group's long-term business plan to be adapted to the current and future situation after covid-19 with a focus on strengthening revenue flows for both subsidiaries,” he added.
Malaysia Airlines Group will “leverage the resources and manpower available in the group” and potentially use existing Malaysia Airlines B737-800 equipment. The flag carrier has 47 of this aircraft type, 30...
09.10.2020 - 11:06 UTC
Malaysia Airlines (MH, Kuala Lumpur Int'l) parent company Malaysia Aviation Group (MAG) has warned lessors that its own parent, state-run sovereign wealth fund Khazanah Nasional, has threatened to cut off funding and liquidate the group if it fails to restructure leasing payments, Reuters reported on October 8.
A letter to lessors from the group, seen by the news agency, refers to a critical and comprehensive reorganisation of its business and capital structure, known as Plan A, the failure of which would see funds and assets diverted to affiliated low-cost carrier Firefly (FY, Penang), referred to as Plan B.
“In the event Plan A fails, the shareholder (Khazanah) will cease funding for MAG and will trigger a winding down/liquidation process for MAG,” said the letter, the existence of which was confirmed by six separate sources, according to Reuters.
Coming just days after the group sent a letter to lessors asking for substantial discounts as part of its emergency restructuring plan, the new letter said that Khazanah Nasional would, under Plan B, “inject...
07.10.2020 - 00:21 UTC
As news emerged that Malaysia Aviation Group had told lessors it was unlikely to make payments after November unless it received more government funding, Malaysia Airlines (MH, Kuala Lumpur Int'l) issued a statement on October 2 saying it had reached out to lessors, creditors, and suppliers to tell them it had launched an urgent restructuring drive.
The plan, which requires a comprehensive reorganisation of the company's business and capital structure, is critical for Malaysia Airlines to exit the current crisis and re-emerge stronger in terms of capital and finances, the statement said.
“The restructuring process is targetted for completion in the next few months. However, if the results cannot be achieved, the group will have no choice but to implement more drastic measures,” it added.
It has already taken “difficult steps” since March to cut costs and protect cash, it said, including salary cuts for the management team and pilots, unpaid leave, and renegotiating contracts in an effort to maintain continuity and protect as many jobs as possible.
Now, because of the “profound...
