A Malaysia Airlines union today refuted claims the carriers large workforce had contributed to losses that it blamed on poor planning and wrong decisions by management.

Union president Alias Aziz said losses incurred by MAS had nothing to do with the strength of its workforce.

"Why punish the workers (through a voluntary separation scheme) when it is due to management's poor planning," he said.

Alias, who represents some 9,000 of the carriers 22,000 workers, said even if the carrier carried out controversial plans to cut labour, the airline was unlikely to emerge from the red.

"It is the fault of the management, not the workers. The management does not listen to our views. But instead they pay huge amounts of money to foreign consultants. This wastage must stop," he said.

Finance Ministry Parliamentary Secretary Hilmi Yahya on Monday said MAS could cut its workforce but only after holding talks with unions.

Hilmi's remarks followed a report that the carrier planned to slash the pay of top managers from next month as part of cost-cutting measures following disappointing quarterly results.

The airline recently announced one of its worst ever quarterly losses at RM280.66 million for the three months to June, after a profit of RM26.58 million a year earlier.

MAS has announced an ambitious five-year plan to boost profits by up to one billion ringgit, which included a management shake-up. It is expected to announce its second quarter results later this month.

MAS late yesterday said it would present a comprehensive plan to address its performance when it presents its quarterly results.

Steps are being taken to address its financial and operational performance and "will be announced at the appropriate time," it said in a statement.

Money wasted

Alias said among the projects the union felt the carrier had spent its money wrongly were a sponsorship programme, the renovation of aircraft cabins and the order of six Airbus A380 planes.

Each A380 costs RM1.2 billion while the cabin refurbishments works cost RM700 million, he said.

"Why six A380 aircraft now? With high fuel prices, it will surely drive up operating costs. We should have delayed the order," he said.

Sponsorship programmes included dancers to perform at the Royal Albert Hall in London, he said.

"These are examples of bad decisions and planning by the management that ate a huge chunk of Malaysia Airlines money and when the company reported losses, the blame went to the workers," he said.

Alias said MAS could cancel all non-profitable international destinations such as to New York, and the union plans to make its case with Prime Minister Abdullah Ahmad Badawi.