Malaysia Airlines is moving to sell its headquarters on prime land in the capital as part of plans to restructure the troubled national carrier, a report said today.

The headquarters will be sold under closed tender with a reserve price of RM130 million (US$34.76 million), the Star daily newspaper reported.

The airline's property department said it would accept the highest bid and best payment terms.

"The company is also meeting individual parties who have expressed the intention to buy the property directly," a department official was quoted as saying.

The sale of the 35-storey building in the city centre comes despite opposition last month from members of Parliament, who consider the headquarters a Malaysian icon.

10 property agents

Ten property agents have been asked to invite interested parties to bid in a move that comes after the loss-making carrier reportedly asked most of its staff to move from the 20-year-old building.

"We will invite interested buyers and negotiate on their behalf. This is a closed bid and we can submit any proposal," one of the appointed property agents told the newspaper.

The sale is part of restructuring moves by airline managing director Idris Jala who is expected to detail the plans next month.

The government has reportedly said it will not interfere in the loss-making carrier's management decisions.

Malaysia Airlines ended 2005 in a troubled state after posting two consecutive quarters of losses, and faced calls for costs to be slashed and better contingency plans to be made for rising fuel prices.