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MAS Renegotiating 4,000 Contracts Under Recovery Plan

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KUALA LUMPUR: Malaysia Airlines (MAS) will renegotiate 4,000 contracts under its recovery plan, Prime Minister Datuk Seri Najib Razak said today.

In a written reply to Zuraida Kamaruddin (PKR-Ampang), Najib said this was among the measures taken following the takeover by Khazanah Nasional Bhd.

“Some 4,000 contracts have been identified under a comprehensive review of MAS contracts,” he said.

Najib said MAS is also currently negotiating with Brahim’s Airline Catering Sdn Bhd to enter into a new agreement.

” Both parties had reached a settlement agreement for a temporary period between Oct 1, 2014 and Mar 31 this year.

“The agreement will see a reduction in monthly expenses in the period agreed, apart from resolving the outstanding,” he said.

Najib said as of this month, payments of RM1.38billion have been made to shareholders under the approved Selective Capital Reduction plan.

Next month a corporate development centre would also begin operations to provide retraining and job placements for MAS staff who will not be absorbed into the new company.

Last year, the government announced a recovery plan for MAS and the august house had passed the Malaysian Airline System Bhd bill 2015 to faciliate the airlines takeover.-NST

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