Employees of Malaysia Airlines Berhad (MAB) and other subsidiaries under The Malaysia Aviation Group (MAG) have been offered an early retirement scheme.

The group offered the scheme while negotiations with creditors and lessors to restructure the flag carrier airline are ongoing.

Source: The Straits Time

Bernama sighted The MAG Early Retirement Application form which is aimed for employees across the airline group, including MAB, Firefly, MASwings, MAB Kargo, AeroDarat Services, Hijrah Biru, and the MAB Academy. It is specifically for Malaysia-based employees, aged 45 and above, who have continuously served the company for a minimum of 10 years.

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According to Business Times, MAG has not responded immediately to a request for comment. However, the National Union of Flight Attendants Malaysia (NUFAM) president Ismail Nasaruddin commented on the issue saying the decision was “fair” compared to other airlines’ decision to cut down their entire operation without offering any compensation in advance.

Source: TODAYonline

“MAG is not paying much; the Voluntary Separation Scheme (VSS) offer is only for three months’ salary. If the outcome from this offer doesn’t match with the numbers they are looking at, then more drastic measures may be implemented such as termination or retrenchment,” Ismail told Bernama based on information gathered from sources in MAG.

Ismail believed that if MAG were to offer a retrenchment as compensation, it would be less than what was offered in the VSS. He stated earlier that the scheme has been offered and it is up to the employee to take up the offer.

Source: Reuters

According to him, around half of MAG’s employees are eligible for the offer, including those transferred to the group following its corporate restructuring previously. MAB still has 12,000 manpower despite heavy hits following the spread of Covid-19, which caused the airline and the industry to stumble down from weak demands.

At one time, Malaysia Airlines was at risk of being liquidated after a massive economical blow caused by the pandemic. However, MAB has disproved the notion after a local newspaper reported of a notice to creditors on Malaysian Airline System Bhd (MAS), which is believed to be part of the process in liquidating the company.

Source: The Coverage

Based on the notice, KPMG Deal Advisory Sdn Bhd required all creditors of MAS to submit proof of debts or claims by 5pm on 12th November. According to NST, an MAB spokesperson stated, “The matter is unrelated to MAB and is no way part of its current restructuring exercise.”

It was previously reported that Firefly could turn into our new national carrier if Malaysia Airlines were to be liquidated. Read about it here.

Sources: Bernama, Business Times Sg, NST.

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