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Axe falls as Malaysia Airlines seeks to restructure

Axe falls as Malaysia Airlines seeks to restructure

Malaysia Airlines will be undertaking a network rationalisation exercise as part of the national carrier’s 12-point Recovery Plan outlined by Khazanah Nasional last year.

Government controlled Khazanah Nasional took control of the airline following the loss of two Malaysian Airlines planes in 2014.

The revised network plan is in line with MAS’ overall strategy to be more regionally-focused, with a strong global connectivity through its oneworld alliance and partners.

The network rationalisation exercise will be implemented in quarter two of 2015 and involves the withdrawal of certain routes - Kuala Lumpur – Kunming (effective April 30th 2015), Kuala Lumpur – Krabi (effective May 6th 2015) and Kuala Lumpur – Kochi (effective June 1st 2015).

Furthermore it will withdraw the five times weekly Kuala Lumpur – Frankfurt return service from May 29th 2015.


According to MAS Group chief executive, Ahmad Jauhari Yahya: “The Group is currently going through its most comprehensive restructuring towards rebuilding a national carrier that is relevant in a competitive market, sustainably profitable, and most of all, a national icon that all Malaysian can continue to be proud of.

“Our challenge is to ensure MAS operates and utilises its fleet at an optimum level, as well as to be able to maximize revenue on every route it flies.

“Unfortunately, MAS today continues to operate several unprofitable and low yield routes, with little passenger flow-through to other routes in the network.

“Operation of these very poor performing routes only adds to our worsening financial loss position as a network carrier,” said Ahmad Jauhari.
Continued connectivity will be maintained through MAS’ oneworld alliance which has connections to over 950 destinations across the globe from its 15 other airline members.