KINIBIZ Six months into its corporate restructuring, ailing carrier Malaysia Airlines is aiming to slash its capacity by more than 10 percent, owner Khazanah Nasional said today.

The government-owned strategic investment fund said following the transfer of the airline’s business, assets and operations from the existing entity (Oldco) to a new company (Newco) by July 1 this year, the airline will focus on more profitable domestic and regional routes.

“Newco plans to grow its domestic and Asean route capacity by 6-7 percent per annum and Asia Pacific by 5 percent to build its Kuala Lumpur hub connectivity,” said Khazanah in a statement today, adding that the airline will also be “reviewing its European and Middle Eastern routes to focus on network contribution and profitability”.

This means cancellation is on the cards for unprofitable routes, said the fund.

Last December the airline was suspended from trading on Bursa Malaysia, being taken private as part of Khazanah’s 12-point turnaround plan with a total package of RM6 billion, which will be disbursed in tranches subject to certain conditions being met.

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