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Last Updated: Tuesday, 28 March 2006, 06:58 GMT 07:58 UK
Malaysia Airlines cuts 6,500 jobs
A Malaysian Airlines Boeing 737-400
The airline is giving up 96 routes
Malaysia Airlines is to cut 6,500 jobs and give up 96 domestic routes as its turnaround efforts gather pace.

The announcement comes a month after the loss-making, state-owned carrier first unveiled plans to cut costs by 20% and close unprofitable routes.

Malaysia Airlines will only be left with 19 domestic routes after the 96 it is giving up after taken over by its main budget airline rival Air Asia.

Kuala Lumpur is also to end all Malaysia Airlines' subsidies.

Annual losses

The detailed reform plans come after the airline posted a net loss of 616m ringgit ($166m; 95m) for the three months to 31 December, its third consecutive quarter of losses.

It hopes to deliver a profit of 50m ringgit in 2007 and 500m ringgit by 2008.

Malaysian Airlines is 69% owned by the government, which in recent years subsidised the carrier by bearing its 300m ringgit annual losses.

The airline will remain a full service provider rather than budget flyer after the restructuring work.

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