KUALA LUMPUR, Aug 29 — Malaysia Airlines (MAS) will review its routes to Europe and Istanbul, Turkey, in the restructuring of the national carrier, majority shareholder Khazanah Nasional Bhd said today.

Khazanah managing director Tan Sri Azman Mokhtar stressed, however, that MAS would announce later details of any routes that may be axed.

“London will remain. Some of the other routes, the four points in Europe, one in Istanbul, will be reviewed,” Azman told a media briefing here today.

“The focus is to move to a cost structure that’s more sustainable,” he said.

Azman pointed out that MAS’ revenue was only a third to a half of its regional peers Cathay Pacific and Singapore Airlines.

The full-service carrier also suffered a large cost disadvantage, of 40 per cent, in comparison to its low-cost carrier competitors.

The 12-point MAS recovery plan includes moving MAS’ headquarters and operations from Subang to its principal home airport, the Kuala Lumpur International Airport.

Khazanah will also invest in a re-skilling programme for the MAS staff who will be laid off.

The sovereign wealth fund and MAS have also signed memorandums of understanding with two companies — Scicom Berhad and Sutherland Global Services — to provide up to 3,500 jobs for the MAS employees that will be laid off. 

MAS’ new company will be relisted between 2018 and 2020.

Azman also said that industrial relations would be strengthened, citing an Employee Consultative Panel to align staff, unions and management.