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Malaysia to restructure aviation sector.

AIRLINE INDUSTRY INFORMATION-(C)1997-2006 M2 COMMUNICATIONS LTD

As part of a restructuring of the aviation sector in Malaysia, AirAsia, an economy carrier, is to share 19 domestic routes with Malaysia Airlines and exclusively fly a further 96 smaller routes.

Under the new domestic aviation model that will come into effect on 1 August the Malaysian government will end subsidies to the state-owned Malaysia Airlines, The Associated Press said.

The 19 domestic routes being shared between the two airlines will reportedly include flights to Penang, Langkawi, Kota Kinabalu and Kuching and 13 of the 19 routes will depart from Kuala Lumpur.

In related news Malaysian Airline System Bhd, the operator of Malaysia Airlines, has revealed that the reduction in its operations will lead to the airline laying off 6,500 employees.

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Publication:Airline Industry Information
Article Type:Brief article
Geographic Code:9MALA
Date:Mar 28, 2006
Words:143
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