Malaysia Airlines announces major revamp plan

Malaysia Airlines will remain a full service international airlines as the company tries to recover from years of losses and two major air accidents in one year, its head said on Monday.

Malaysia Airlines'new Chief Executive Christoph Mueller announced a three-phase turnaround plan, which eyes growth to start in 2017/2018.

Mueller admitted Malaysia Airlines has started a fall even before the twin tragedies it suffered in 2014. "We are technically bankrupted,"he said.

A new Malaysia Airlines company will be incorporated, taking over contracts, assets and liabilities, and begins operations from Sept. 1.

Malaysia Airlines will also cut its work force by one-third. All of the company's some 20,000 employees are due to receive termination letter on Monday, while only 14,000 are expected to be offered work of the revamped airlines.

Malaysian Transport Minister Liow Tiong Lai said earlier the Malaysia Airlines aims to cut its long-haul fleet and routes, and will concentrate on regional transit hub business.

He said the company will serve as a transit carrier to fly regional links to Australia, China, India and Southeast Asian countries like Indonesia and Thailand.Mueller, meanwhile, insisted that Malaysia Airlines would remain as a full service international carrier.

Malaysia Airlines Flight MH370 went missing on March 8 last year en route from Kuala Lumpur to Beijing with 239 people on board while Flight MH17 crashed in eastern Ukraine on July 17 on its way from Amsterdam to Kuala Lumpur. All 298 people aboard were killed.

Khazanah Nasional, Malaysia's strategic investment fund and Malaysia Airlines's parent company, announce the privatization of the company late last year for restructuring. Endi