Malaysia Airlines' parent company to cut flight capacity by 20% this year

KUALA LUMPUR: Malaysia Aviation Group (MAG), the parent of national carrier Malaysia Airlines, said on Thursday (Aug 29) it would reduce network capacity by 20 per cent across its airlines this year amid a shortage of planes, labour and parts.

The group, which also operates carrier Firefly and Muslim pilgrimage service provider Amal, said in a statement the reduction would involve domestic flights as well as routes in Southeast Asia, North Asia, Australia, New Zealand, Greater China, South Asia and the Middle East.

"While it is a difficult decision, our focus is to prioritise customers first, ensuring we can deliver credible flight schedules and ensure the best possible customer experience moving forward," MAG said.

MAG said this month it would temporarily reduce flights across all of its carriers until December following a string of service disruptions this year.

Malaysia's civil aviation regulator this week cut the duration of Malaysia Airlines' air operator certificate to one year from three years following a probe that found significant technical issues at the state carrier, including a shortage of skilled labour and mechanical parts.

MAG said it would work closely with regulators and manufacturers to address operational challenges and ensure timely and reliable delivery of spare parts.

A global shortage of parts has also affected deliveries of new planes, which has impacted the group's flight planning, MAG said.

It said it had received only four Boeing 737-8 aircraft out of 13 expected this year.

Similarly, it was scheduled to take delivery of four A330neo planes from Airbus in 2024, but will now receive only three by the end of the year, MAG said.