KUALA LUMPUR: While some analysts are withholding their opinions on Malaysia Airlines' (MAS) recovery plan pending more information, others regard it as a positive move.
Mercury Securities research head Edmund Tham said that the rescue plan, which includes cutting routes and laying off staff, is a feasible start for MAS to get back on its feet.
Tham believes that although it will be hard, it is not impossible to turn around the airline by 2017.
Maybank Investment Bank analyst Mohshin Aziz said the plan seems similar to the carrier's previous plans, with the exception of route network revamp and job cuts.
"At this juncture, it is too early to be optimistic. We will wait for more information before establishing our views," he said .
Mohshin, however, agreed that the plan to reduce the staff was substantial as it gives the airline an opportunity for a new start.
Kenanga Research's aviation analyst Adrian Ng said the recovery plan gives a feeling that things are moving forward and will improve.
He said it was important for there to be no staff union at the new company as he believed that young executives today were more incentive-driven and would not have a need for a union.
"The aviation industry is very tough and competition is very stiff," he said, adding that he expects MAS' performance to improve.
Endau Analytics aviation analyst Shukor Yusof said Khazanah Nasional Bhd ought to look seriously at appointing someone from within the airline industry to helm the beleaguered national carrier.
He said the bulk of MAS' financial and operational problems - after the airline had a new lease on life in 2003 when it started the financial year with no debt - came directly from the fact that there was no fully thought-out business plan and a lack of understanding of the aviation industry.
"One of the reasons could be because there are non-airline people at the helm, preventing them from adapting and responding quickly to changes in the industry, like dealing with competition from low-cost carriers," he said.