oneworld alliance member Malaysia Airlines was placed into voluntary administration today, May 25. The appointment of the administrator was made as part of ongoing efforts to resturcture the company.
Christopher Mueller, the newly appointed chief executive offices said operations would continue as normal under the administration and existing reservations would not be affected.
“This appointment does not affect our daily operations or existing reservations,’’ he said. “You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honoured, and that our Enrich frequent flyer program continues with miles and status preserved.”
A statement released by the airline said the appointment reflected the restructuring that needs to take place by September, when the airline will relaunch under a new business model, together with a new management team led by Mr Mueller.
Eaerlier this year, the Malaysian Governement enacted the Malaysian Airline System Berhad (MAB) (Administration) Act 2015. The act provides for the administrator to facilitate the transafer of selected assets and liabilities to MAB. From Spetember, MAB will MAS as Malaysia’s new national carrier.
While it is said that the Enirch program will continue as is, the restructuring will likely result in the elimination of routes and jobs as the carrier tries to restructure itself back to profitability.
Reports from Malaysia have suggested numbers in the order of 6,000 jobs could be lost during the restructure.
The reduction in routes also requires a smaller fleet. While there had been reports that Malasysia Airlines had been considering selling its A380 fleet, more recent reports have suggested that it is likely to be keeping at least some of the aircraft for use on the Kuala Lumpur-London routes.