Loss-making Malaysia Airlines (MAS) said yesterday its three-year recovery plan is on track but the national carrier is not out of trouble just yet.

"Our business plan ... is it on track? I think it is very much so," Munir Abdul Majid, the carrier's chairman told reporters after a shareholders meeting.

Managing director Idris Jala, who was brought in by Prime Minister Abdullah Ahmad Badawi last December to revive the airline, said the carrier was on course but not out of the turbulence.

"I'm very upbeat about it although that doesn't mean we have got out of our troubles. It's still a long road. This is not a sprint but we will stay the course," he said.

MAS launched a RM4 billion turnaround plan in March after it posted a RM1.3 billion annual loss for 2005.

The plan aims to trim losses this year to RM620 million before the company turns a profit of RM50 million in 2007 and then posts record earnings of RM500 million in 2008.

As part of the revamp, MAS will surrender all but 19 major domestic routes to budget carrier AirAsia, sell assets to raise cash and cut its 23,000 staff via a voluntary retrenchment scheme offered last month.

Still studying options on A380s

Asked if the carrier will shelve plans to acquire six A380 superjumbo jets, Munir said: "The management is studying all the options available within the terms of the agreement." He declined to elaborate.

Last week the company's union urged the carrier to defer the purchase of the A380 until MAS returns to profit and other carriers have gained experience operating the aircraft.

Airbus announced earlier this month it had been forced to delay delivery of the giant A380 by another six to seven months due to production problems.

MAS said in response that it was reviewing the terms of its purchase agreement for the A380 jets.

Analysts have said Malaysia Airlines must concentrate first on a host of problems, including improving its poor financial health and high fuel costs, before it takes on the challenge of operating the A380.