Loss-making national carrier Malaysia Airlines (MAS) has appointed two Australians from Qantas to top positions as it aims to meet financial targets, a report said today.

The Star newspaper, citing industry sources, said Dave Condit would take up the post of general manager of sales while Kim J. Kelly would be assisting in the area of inventory and yield management.

Both would report to Ahmad Fuaad Dahalan, MAS senior general manager of sales, distribution and marketing.

A MAS spokeswoman told AFP the airline had no immediate comment on the report.

The appointments, on a two-year contract basis, are effective from Thursday, The Star said.

Condit and Kelly are the latest Qantas imports to join MAS after Paul Mooney was appointed as senior general manager of the network and revenue management division in June.

It said Bashir Ahmad had resigned from his post as executive vice-president of the airline effective yesterday and would take up a position as advisor to the transport ministry.

Wide powers

Two other officials who have reportedly resigned are Rodzlan Akib Abu Bakar, the airline's executive vice-president for information technology and Abdullah Mohamad Zaid, who heads corporate affairs.

Sources said the changes indicated that the MAS board had given wide powers to managing director Mohamad Nor Mohamad Yusoff, a close ally of Prime Minister Mahathir Mohamad, who is attempting to turn the ailing carrier around.

Economists say MAS faces a long and turbulent flight towards recovery ahead in the aftermath of the Sept 11 terror attacks, with many travellers still reluctant to fly.

A report recently said MAS may ground at least 10 aircraft and slash its workforce by 3,000 as part of a plan to remain afloat.

MAS has announced it would axe 12 unprofitable international routes and increase flights in Asia following the terrorist attacks in the US.

It said the network restructuring would cut losses by up to RM190 million a year and that it expected to break even by 2004.

The airline embarked on a plan to return to the black after the government renationalised it in February. It has debts totalling more than RM10 billion.