Malaysia Airlines is to cut 6,000 staff as part of recovery plan after being hit by two disasters this year.
The reduction in staff numbers represents around 30% of its workforce of 20,000. The airline will become completely state owned, and a new chief executive will be put in place, The BBC reported
Investigators continue to hunt for flight MH370, the Kuala Lumpur to Beijing flight which went missing in March. The MH17 air crash in eastern Ukraine in July is also under investigation.
The recovery plan will cost about 6 billion Malaysian ringgit (US$1.9 billion).
Khazanah Nasional, the state investment company that owns a 69% stake in the troubled firm, will take 100% ownership.
"The combination of measures announced today will enable our national airline to be revived," said Khazanah's managing director Azman Mokhtar.
Long haul routes will be slashed, and the airline aims to return to profitability by 2018.
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