Malaysia Airlines (MAS) should consider offering a voluntary separation scheme (VSS) to its employees in order to cut costs, said Finance Ministry parliamentary secretary Helmi Yahya.

"I will not say if it is a retrenchment. But maybe MAS should negotiate with its union to cut costs by giving a VSS," he told a press conference at the Parliament lobby today.

He said compared to other airlines, such as budget airlines AirAsia, MAS has excessive staff.

"But MAS has a very strong union, so the management should discuss it with the union on how to cut down on the number of staff at all levels," he added

He said while the final decision laid with the new MAS management, more serious efforts to reduce costs must be taken.

New boss

MAS has suffered a net loss of RM280.7 million in the first quarter, ending June 30 this year.

Following this, its managing director Ahmad Fuaad Dahlan announced his retirement and Idris Jala, the new chief executive, will take over next month.

Last week, it was reported that MAS will be going on a cost-cutting drive starting next month which will see its senior staff taking a 30 percent pay cut.

During the question and answer session earlier, Helmi said MAS' losses was mainly due to the drastic increase in fuel prices this year.

He said fuel costs consisted 43 percent, the largest chunk in the airlines operational expenditure.

"Apart from fuel, management cost also consists a large part of MAS' operation costs. That's why there was a suggestion to cut pay," he added.