Beleaguered Malaysian Airline System Bhd (MAS) is expected to be burning up cash at an even faster rate as its management will likely be forking out a chunk of ex-gratia payment to its staff.

This cash outflow is on top of the losses it is already clocking up as a result of flight cancellations in the wake of the two aviation disasters that struck the national carrier.

“The management, in consultation with the government, has agreed to give RM2,000 (US$630) in ex-gratia payment to all staff,” an industry source told The Edge Financial Daily , adding that the management has already made an announcement to that effect and that all staff can expect the payment as early as next month.

He said the amount is a small token of gratitude for their strong sense of duty during the carrier’s difficult times.

According to its latst financials, the airline has 19,577 staff on its payroll. This means the airline would likely fork out an estimated RM39 million (US$12.24 million) in cash.

- Reuters