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Malaysia Airlines Announces Mutual Separation Scheme

We are committed to conducting this rightsizing exercise in the most compassionate way possible by working out terms and conditions which are attractive to our employees. We have also tasked key executives with ensuring that there are no service disruptions nor compromising safety and service quality. Throughout the exercise, we want to ensure that our customers’ needs are being taken care of”, said Idris Jala, Managing Director, Malaysia Airlines.

Employees whose MSS applications have been approved, will receive payment based n their current monthly salary, ranging from 1 month to 3 months, for every year of service in the company, a one-off medical benefit payment of RM 2,000 per staff and annual leave buy-back on all unutilized staff leave In addition, hospitalization benefits for the staff, spouse and dependants will be provided for 12 months from the date of separation and one complimentary privilege travel air ticket for use by 31 Dec 2006. gree. Once the employee has accepted, the respective Divisional Heads will then recommend if the staff can be released or otherwise. These recommendations will then be reviewed and decided by a Panel comprising key leaders in Malaysia Airlines. The Panel’s decision is final and will be communicated to staff within two weeks from the date of the decision. The company targets to complete the MSS by 31 July 2006.

Throughout the MSS exercise, Malaysia Airlines will activate Help Desks in KL International Airport (KLIA) and Subang, including a toll-free Helpline from 0800 hours to 2400 hours to assist staff. To help employees who decide to accept the MSS, the company is in talks with arious airlines on outplacement opportunities and the Ministry of Human Resources and external parties on advisory and counselling services.

Concurrently, Malaysia Airlines is continuing its meetings with AirAsia to finalise the handing over of the non-trunk domestic routes as well as the Rural Air Services’ operations in time for the 1 August 2006 handover date. From 1 August 2006, Malaysia Airlines’ domestic services will take to the skies serving the trunk routes with a leaner outfit, namely 16 stations, 58% reduction in flight frequencies, 50% reduction in aircraft fleet and 28% reduction in seat capacity.

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