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Malaysia Airlines to cut 6,000 staff in overhaul
http://hosted.ap.org/dynamic/stories/A/AS_MALAYSIA_AIRLINE_OVERHAUL?SITE=VANOV&SECTION=BUSINESS&TEMPLATE=DEFAULTMalaysia Airlines to cut 6,000 staff in overhaul
By EILEEN NG and KELVIN CHAN
Associated Press
Aug 29, 6:51 AM EDT
KUALA LUMPUR, Malaysia (AP) -- Malaysia Airlines will cut 6,000 workers as part of a $1.9 billion overhaul announced Friday to revive its damaged brand after being hit by double passenger jet disasters.
The staff reduction represents about 30 percent of its current workforce of 20,000. A search for a new CEO is underway but there is no move to change the airline's name, which some branding experts had said was necessary for a successful makeover.
Khazanah Nasional, the state investment company that owns 69 percent of the airline, said the overhaul includes the establishment of a new company that will take over the existing Malaysia Airlines business and its reduced staff.
The revamp and new investment in the carrier will cost about 6 billion Malaysian ringgit ($1.9 billion). Analysts say the substantial staff cuts suggest the airline will reduce flights to Europe and China.