(AFP) Loss-making Malaysia Airlines (MAS) hopes soon to appoint a foreign director to help turn its fortunes around, its managing director said today.

Mohamad Nor Yusof told reporters that the candidate now being considered formerly served with a multinational corporation but gave no details.

He also said the airline estimates an RM80-RM120 million annual rise in gross revenue following government approval to raise most domestic fares by 51 percent from next month.

He said the rise, which affects only peninsular Malaysia and not Sarawak and Sabah, was still not enough to offset losses on domestic routes.

Return to profitability

The national airline loses RM320 million a year on domestic routes.

It has reported multi-million ringgit losses on all operations for four straight years and has borrowings totalling RM10.34 billion.

In February the government renationalised the airlines through a controversial buyback of a 29 percent stake from Naluri Bhd. for RM1.79 billion, more than twice the shares' market value.

The new management has embarked on a major programme to return to profitability in two years.

Mohamad Nor said shareholders have approved the proposed issue of 800 million new preferential shares at one ringgit each, as the first step in restructuring the company's capital base.