MALAYSIA Airlines will review unprofitable routes and freeze recruitment as part of wide-ranging measures to cut costs, the national news agency reported yesterday.
The airline also plans to reduce the budget of all its divisions by 10 percent and stop spending on office refurbishment until further notice, managing director Idris Jala was quoted as saying by Bernama news agency.
"It is the worst time for the airline industry. We are, however, cautiously optimistic," Bernama quoted Idris as saying on the sidelines of an international aviation meeting in Istanbul, Turkey.
Idris did not specify which routes might be affected, but said the company's profit margins have been dampened by soaring oil prices, global economic uncertainties and weaker travel demand.
"We are monitoring the overseas routes," Idris said in the report. "Capacity reduction is not about killing the entire route but just reducing it. ... Routes that bleed cash, however, will be cut off."
Malaysia Airlines will first try to salvage its current routes by making changes in pricing, sales and schedules.