[KUALA LUMPUR] Malaysia Airlines' (MAS) massive overhaul of its business model and sticky cost structure hits at the heart of what needs to be done for the national carrier, said analysts.

On Aug 29, Khazanah Nasional unveiled a plan to turn around its 70 per cent owned airline, which has recorded RM8.4 billion (S$3.3 billion) in cumulative losses from 2001 to June this year.

The highlights include a RM4.6 billion capital injection after MAS' privatisation to achieve sustainable profits by end-2017, a potential relisting in three to five years after selloff, a 30 per cent workforce reduction to 14,000 employees, a review of routes and renegotiation of supply contracts.