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.