Malaysia Airline may cut jobs

Malaysia Airline may cut jobs

KUALA LUMPUR (AP): Malaysia Airline may be forced to slash
jobs if its business suffers from the fallout of the suicide
attacks in the United States, Malaysia's Transport Minister said,
according to a report Saturday.

Ling Liong Sik said the government's plan to revamp the debt-
ridden airline had included the possibility of job cutbacks, but
that they had previously been considered just an option, the
Malaysian news agency Bernama reported.

Last year, the airline posted a 1.3 billion ringgit (US$300
million) loss. Since then, the company has been trying to stanch
losses and turn around its ailing business. The government had
reassured the airline's labor union that no jobs would be
eliminated.

Ling said that the airline's fares could rise, as competitors
worldwide hike their prices to pay for rising insurance premiums
in the wake of the airline hijackings in the United States,

"However there has been no request to this effect so far and
any increase in airfares needs government approval," he was
quoted as saying.

Ling also said Malaysia has taken steps to tighten security on
aircraft, and is considering several new measures, according to
the report.

The Malaysian flag-carrier reverted to state control in
February this year when the government bought back a 29.09
percent stake in the company from business magnate Tajuddin Ramli
for 1.79 billion ringgit ($471 million).

Prime Minister Mahathir Mohamad has said Malaysia Airline is
discussing a possible alliance with several foreign airlines, and
that the company is considering spinning off its loss-making
domestic operations to sweeten the deal.