Malaysian restrukturerer

Malaysia Air may lay off thousands and replace CEO, sources say


Malaysia Airlines's parent is weighing the future of the carrier's chief executive, Ahmad Jauhari Yahya.

Malaysian Airline System is considering job cuts, a review of aircraft orders and replacing its chief executive officer after the national carrier suffered two disasters this year, people familiar with the plan said.

The airline's parent, sovereign wealth fund Khazanah Nasional, was going to discuss the proposals this week. They also include cutting some routes, said one source who asked not to be identified as the discussions are private. The carrier may need to lay off between 3000 to 4000 people, a second person said. The carrier had 19,577 employees at the end of last year, according to data compiled by Bloomberg.

Khazanah is also talking to as many as three people as possible candidates to replace the carrier's chief executive, Officer Ahmad Jauhari Yahya, whose term is due to expire in mid- September, one of the persons said.

The restructuring measures and Khazanah's offer earlier this month to buy out minority shareholders are part of the plan to revive the airline. The carrier, which will report earnings on Thursday, is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March.