Will all MAS staff, except the CEO, be terminated and rehired?

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All Malaysia Airlines Staff, Except the CEO, Will Be Terminated and Potentially Rehired

Malaysia Airlines (MAS) is set to terminate all its staff, with the exception of the newly appointed chief executive Christoph Mueller, on Wednesday. These employees may subsequently be offered new employment with the airline's new entity, Malaysia Airlines Bhd (MAB). Staff who are retained will also receive a new remuneration package structured according to market rates.
Employee Termination and Re-employment Process

The planned termination will affect all employees, who will learn their fate on Wednesday. Following this, a portion of the workforce may be offered new contracts with the newly established Malaysia Airlines Bhd (MAB). This restructuring aims to align the airline's staffing with its new operational framework.
Revised Remuneration Packages

For those employees who are retained and offered new employment, their remuneration packages will be revised. These new packages will be based on current market rates, indicating a shift in compensation structures as part of the airline's recovery plan.
Restructuring Efforts and New Entity

The airline is undergoing a significant restructuring, which includes the establishment of a new entity, Malaysia Airlines Bhd (MAB). This move is part of a broader turnaround plan initiated after the national carrier was delisted and taken over by sovereign wealth fund Khazanah. The plan aims to rebuild the national icon by transferring all MAS assets to the new entity.
Context of Financial Difficulties

These extensive changes occur against a backdrop of financial challenges faced by MAS, exacerbated by two major air disasters in the year of the report. The airline's financial stability was threatened, prompting Khazanah to undertake a comprehensive RM6 billion takeover and implement a 12-point recovery plan. This plan includes measures to trim the headcount to a more "sustainable" level.

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Will all MAS staff, except the CEO, be terminated and rehired?

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