Thursday, March 26, 2015
MAS earmarks 4,000 contracts for re-negotiation
Finance Minister Datuk Seri Najib Tun Razak said this was among the measures taken to turn MAS around following its takeover by Khazanah Nasional Bhd.
"Some 4,000 contracts have been identified under a comprehensive review of MAS contracts," he said in a written reply a question raised by Zuraida Kamaruddin (PKR-Ampang) in Parliament Thursday.
The review, he added, includes novation of the contracts to create a new obligation from the previous one, termination and renegotiations.
"MAS is currently negotiating with Brahim's Airline Catering Sdn Bhd to enter into a new agreement," said Najib.
He added that MAS and Barhim had also reached a settlement agreement for a temporary period between Oct 1, 2014 and Mar 31 this year.
"The (settlement) agreement will see a reduction of monthly expenses in the period agreed, apart from resolving outstanding costs on the whole," he said.
As of Mar 2, Najib said that payments of RM1.38bil were made to shareholders under the approved Selective Capital Reduction plan.
He added that a corporate development centre would also begin operations this April 1 to provide retraining and job placements for MAS staff who will not be absorbed into the new entity.
The airline staff, who are based at Subang, he added, would move to KLIA by May.
Najib, who is also Prime Minister, added that an employee consultative panel and has since held meetings with MAS union and non-union representatives on Dec 8, 2014 and Feb 17 this year.
The Government announced the MAS recovery plan on Aug 29 last year and passed the Malaysian Airline System Bhd (Administation) Act 2014 to facilitate the airline's turnaround takeover in five years.