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Last updated on May 26, 2012 at 17:19 EDT

Airline May Get Routes Back (Folo) Malaysian Budget Airline Will Buy 15 Airbus Jets BUSINESS ASIA By Bloomberg

April 24, 2007
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Malaysian Airline System said it will consider taking back some routes from rural carrier Fly Asian Xpress as long as they do not hurt Malaysian’s turnaround plan.

Malaysian Airline, which returned to profit in the third and fourth quarters of last year, said it has not been informed by the government about any plan to return the routes, Malaysian Airline’s managing director, Idris Jala, said.

AirAsia took over most of Malaysian Airline’s unprofitable domestic routes last year and subcontracted the rural flights to Fly Asian Xpress, a newly established airline.

“Certainly we will have to look at the detail before making up our mind as a company,” Jala said. We need to see “what level of subsidy, etc. We have not had that kind of deliberations with the government.”

Jala started a three-year plan last year to return the carrier to profit by cutting jobs and unprofitable routes.

(c) 2007 International Herald Tribune. Provided by ProQuest Information and Learning. All rights Reserved.