Cites Overtime Abuse, Overpriced Contracts For Financial Difficulties

Malaysia Airlines CEO Christoph Mueller said in an interview with a Malaysian newspaper that employees were at least in part to blame for the airline's financial difficulties, leading to a reorganization that may cost thousands their jobs.

The Malay Mail online reports that Mueller told the paper The Star that there had been a "bad practice" of "abuse of overtime" at the airline. He said that overtime became a "hidden currency for base pay substitution."

That caused many airplanes to be late leaving their hangars and getting into service, according to Mueller. He also said that other allowances, described as "frivolous", and additional perks contributed to the airline's current financial state.

Mueller said that as the airline reorganizes, "we have to replace this type of bad practice with more flat salaries." He said performance-based incentives will help employees increase their take-home pay. The new salaries, he said, would take into account the cost of living where MAS has the most employees, as well as seniority.

The Star reported that as many as 8,000 workers could lose their jobs as a result of the reorganization effort that began Monday.

FMI: www.malaysiaairlines.com/us/en/corporate-info.html