Dogged by its biggest ever net loss of RM2.5 billion last year, Malaysia Airlines (MAS) plans to go on an aggressive revenue boosting campaign, while keeping an eye on cost.

According to group CEO Ahmad Jauhari Yahya, this would include possible job cuts down the line.

"Manpower cost is something we have to deal with right now. Long term, we have to address that, but immediately (the focus) is aircraft utilisation," he told reporters after MAS' annual general meeting at its training academy in Kelana Jaya, Selangor today.

He noted that MAS currently has about 20,000 permanent staff of which about three-quarters are 'non-flying' and will be less affected by any route cancellations in MAS' cost-cutting exercise.

NONE He, however, declined to answer when asked of MAS' ideal staff strength, saying that it is a "sensitive question".

Interjecting on his behalf, MAS chairperson Md Nor Yusof (left in photo) said that what the management is trying to do now is to have a proper inventory of "what ought and what is".

"If we run a schedule, if its filled up or not, we have to maintain that schedule... there are possibilities that we are looking (at) and we can only move from one period to another.

"It's a live industry and something that happens in the Middle East today could mean cancelling routes there," he said.

No cuts yet, to avoid disruption

Ahmad Jauhari said that in the more immediate term, cost savings are to be made through putting the "most efficient aircraft in place" such as replacing the Boeing 777 with the Airbus A380 on some routes.

"We are (also) looking at flying the narrow bodies further as they are the most efficient of the fleet... We are immediately looking at the cost of aircraft maintenance," he said.

NONE Ahmad Jauhari (left) added that the question of shrinking the workforce will also be dealt with at a later time as MAS is focusing on pushing its revenue by sweating its assets, including its workforce.  

"What we plan to do is maximise... What we get from the current organisation - the revenue initiative - this is immediate. As we move on we have to refine that in terms of structure.

"We don't want too many disruptions right now when we have to push revenue," he said.

Asked on speculation that its chief financial officer Rozman Omar will follow the footsteps of recently resigned MAS deputy CEO Mohammed Rashdan Mohd Yusof, Ahmad Jauhari said an announcement will be made if there is movement among any key players.

MAS intends to cut its cost by 20 percent in the next three years, while pushing rental costs down a further 10 percent. It intends to turn a profit by 2014.

The national carrier posted a first quarter core net loss of RM347 million, forcing analysts to revise consensus net loss forecast for this year from RM521 million to RM858 million.