Financially ailing national carrier Malaysia Airlines (MAS) has forked out RM495.5 million to date for the mutual separation scheme (MSS) it is offering qualified employees.

The payments range from RM2,600 to RM700,000 respectively to 2,662 employees who qualified for the retrenchment scheme - this group comprises only those who have served more than 21 months.

Replying Shaari Hassan (BN-Tanah Merah) in the Dewan Rakyat today, Deputy Transport Minister Douglas Unggah Embas (photo) said the scheme was graded according to an employee's position and length of service.

In a supplementary question, Shaari asked if those paid the highest sum were close to retirement, expressing worry over the huge amount involved and asking if this could cause MAS to lose more money.

Douglas confirmed that such employees were close to retirement age, but said MAS had set up a panel to oversee the scheme. It decided to cap the payment at RM700,00.

The MSS is part of the airline's three-year business plan to return to profit after posting annual losses of RM1.3 billion.

It is cutting payroll costs by laying off 3,000-5,000 of its workforce of 23,000 in the next three to five years through the one-time separation scheme.

Other perks are said to include one-off medical benefits, buying back of unutilised leave, free air tickets valid till year's end, and a year's hospitalisation coverage starting Aug 1.

The airline has blamed its losses on crippling fuel prices and a lower load, but hopes to be back in the black by next year and to achieve record profitability the year after.

Transparency questioned

In a supplementary question, Lim Kit Siang (DAP-Ipoh Timur) noted that some staff have benefitted from a large payout, while others have been poorly compensated.

"People are asking if the compensation is a bonanza - if it's not a chance to get rich,"he said, questioning the management's transparency in handling the payments.

Douglas said some employees were reportedly unhappy about their applications being rejected by the panel, but that his ministry has not received news of any grouses that may have been aired.

"The panel turned down 410 applicants. They have appealed but the decision stays. The government has no news of anyone being unhappy over the scheme and feels that it is going well," he said.

To an unrelated question, he said that MPs would still enjoy discounted fares on MAS as long as there was seats available for their flight.