Malaysia Airlines issues 20,000 termination letters; 14,000 offered jobs with new company
Troubled carrier Malaysia Airlines has sent out 20,000 termination letters to employees as part of its major revamp plans.
While 6,000 will have their contracts terminated, 14,000 employees will be offered employment with the new Malaysia Airlines Bhd group (MAS Bhd).
Malaysia Airlines was already suffering when it was struck with two major aviation disasters.
In March last year, MH370, a plane bound for Beijing disappeared and there has been no signs of recovery.
Another plane, MH17, was shot down while it was flying over Ukraine in July last year.
MAS Bhd will be grouped into three divisions - operations, support functions and learning and development - with a total of 12 subsidiaries.
Those not offered jobs with the new MAS Bhd will be given one-month basic salary for every year of service for those who have worked for up to 10 years.
And those who have served the airlines for more than 10 years will get 1.5 months of salary for every year of service.
Those who choose to accept the offer with the new company will be offered a sign-on payment.
And if they are still with the company after 18 months, they will get a retention payment.
Despite talk that Malaysia Airlines would re-consider unprofitable long-haul routes such as to Europe, the airlines announced that it would remain an international full-fledged service carrier.
It will also retain all the domestic routes.