"I think ironically and sadly, the events, the recent tragic events, as well as the ongoing difficulties at MAS, have actually created a perfect storm that is allowing this restructuring to take place."
"It is a critical requirement that NewCo starts on a right footing in terms of its staff size and work practices. The estimation of a workforce of approximately 14-thousand represents a net reduction of six-thousand staff, or a net reduction of 30 percent from the approximately 20-thousand current staff in OldCo."
Malaysia Airlines will cut 6,000 workers as part of a 1.9 billion US dollar overhaul to revive its damaged brand after being hit by double passenger jet disasters.
The staff reduction announced on Friday represents about 30 percent of its current workforce of 20,000.
Khazanah Nasional, the state investment company that owns 69 percent of the airline, said the overhaul includes the establishment of a new company that will take over the existing Malaysia Airline business and its reduced staff.
Analysts say the substantial staff cuts suggest the airline will reduce flights to Europe and China.
The airline will be removed from the Malaysian stock exchange and taken completely under the wing of the government.
Khazanah, which previously announced that it plans to take 100 percent ownership, aims to restore Malaysia Airlines to profitability by the end of 2017 and then relist its shares on the stock exchange by the end of 2019.
A substantial revamp has long been on the cards for Malaysia Airlines, which was struggling with chronic financial problems even before it was hit by the double disasters this year.
Investigators continue to scour the southern Indian Ocean for Malaysia Airlines Flight 370 which veered far of course while en route from Kuala Lumpur to Beijing on March 8 with 239 people on board.
In July, 298 people were killed when Flight 17 was blasted out of the sky as it flew over an area of eastern Ukraine controlled by pro-Russian separatists.
The tragedies have scarred the airline's brand, once associated with high-quality service, though there are no plans to change its name.
The airline says passengers fell 11 percent in July from the year before.
In releasing its latest quarterly financial result, a loss, on Thursday, Malaysia Airlines said the worst financial impact from the disasters will come in the second half of this year.
Khazanah has begun a search for a new chief executive for the airline, which is likely to be completed by the end of this year.
Current CEO Ahmad Jauhari Yahya will continue to head Malaysia Airlines until its new incarnation is established in July next year.