Union fears jumbo purchase will 'bleed' MAS
Malaysia Airlines should cancel the purchase of the A380 superjumbo from Airbus to avoid further financial bleeding of the cash-strapped carrier, a union official warned today.
Malaysia Airlines should cancel the purchase of the A380 superjumbo from Airbus to avoid further financial bleeding of the cash-strapped carrier, a union official warned today.
"It will bleed the finances of Malaysia Airlines further if we buy the A380s. The purchase will be a financial burden to the carrier," Alias Aziz, president of the Malaysian Airlines Employers Union told AFP .
Alias made the comments following the Airbus announcement of another 10-month delay in deliveries of the A380.
Alias said three months ago he wrote a letter to Malaysia Airlines' managing director Idris Jala and to its parent company Penerbangan Malaysia Bhd on the need to ditch the acquisition.
"But it is disappointing that they have not replied," he said.
Cash problem
Alias, who represents half of the 18,000 Malaysia Airlines workforce said the A380 does not fit with the airline's profit plan announced in March.
"If our finance is strong, I think it is alright to acquire the A380s. But at the moment, since we face a cash problem, the purchase will not help in our recovery plan," he said.
Malaysia Airlines on Wednesday said it was disappointed by another delay in the deliveries of A380 but added this would not hurt its recovery plan.
Malaysia Airlines in June said it was reviewing the terms of its purchase agreement for six A380 jets after Airbus advised that technical problems meant a sharp cutback in planned deliveries.
Malaysia Airlines has cut back domestic and international routes and will slash its workforce by 6,000 employees over two years.


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