Rivals MAS and AirAsia Group undergo reboots to survive

Kuala Lumpur

EVEN as Malaysia Airlines (MAS) works to untangle itself from the legacy issues that have grounded its economic takeoff for the better part of two decades, its main rival AirAsia Group is bending under the weight of competition in an over-served market.

MAS under its new chief Christoph Mueller is rationalising unprofitable routes, and four destinations have been axed; 6,000 jobs will also be cut, with an eye on making the revamped entity, Malaysia Airlines Bhd (MAB), profitable in three to four years.

AirAsia X (AAX), meanwhile, is still in the red two years after its listing on Bursa Malaysia, despite its earlier confidence that it could make long-haul budget flights profitable; last week, eight of its board of directors gave up their director fees of over RM400,000 in a show of solidarity with shar…