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Kuala Lumpur-Frankfurt may be on the cut list among many other routes on Malaysia Airlines.

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Kuala Lumpur-Frankfurt may be on the cut list among many other routes on Malaysia Airlines.

Malaysia’s state investor, Khazanah Nasional Bhd., which is seeking to take the unprofitable carrier private, has prepared a plan to revive the airline after it lost 2 aircraft in less than 5 months, killing 537 people this year. Khazanah currently owns about 70% of the airline’s parent firm.

Malaysia Airlines is likely to cut a quarter of its staff and stop flying to some cities in China and Europe as a part of the embattled flag carrier’s revival plan that may be announced later this week, according to people familiar with the proposals.

This was reported today in the Asia WSJ.

Under the plan, Malaysia Airlines will stop flying to some unprofitable routes in China and other places.

The carrier has been losing business in China after Flight 370 disappeared on March 8 while on a flight to Beijing from Kuala Lumpur. No trace has yet been found of the Boeing Co. BA +0.68% 777 jet or the 239 passengers and crew on board. On July 17, Malaysia Airlines Flight 17 crashed in eastern Ukraine, killing 298 people. The plane, also a Boeing 777, is believed to have been downed by a surface to air missile.

The airline will also lay off staff, though it is yet to finalize details, the people said. One of them said that about a quarter of the company’s nearly 20,000 staff may be asked to go, a proposal that is likely to be strongly opposed by the powerful employees’ union.

A committee will be formed to find a successor to Ahmad Jauhari Yahya, the company’s chief executive, whose term runs out in September, one of the people said.

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