Malaysia Airlines has announced discounts of up to 80-per cent in tickets and scrapped terminal charges for cargo transhipped through its hub at Kuala Lumpur International Airport in a bid to boost traffic after an over 70 per cent drop in 2008 profit.

The Malaysian national carrier, which reported a 71-per cent fall in its 2008 profit, is offering discounts of up to 80 per cent on ticket price on select domestic and Southeast Asian flights to spur sales.

The airlines also reported to have scrapped terminal charges for cargo transhipped through its hub at Kuala Lumpur International Airport for six months.

Malaysian Airlines is already offering rebates of between 50 per cent and 75 per cent on cargo transhipment and will now offer 100 per cent discounts on freight, managing director of the airlines' cargo unit Shahari Sulaiman was quoted as saying.

The radical action was necessitated by the current economic climate, managing director Idris Jala said while unveiling the `Malaysia Airlines stimulus package.'

"It's absolutely necessary to change your business model, and you need to change it radically to survive and win in such a tough operating environment," he said.

"I am very convinced that must be the way to survive in this environment -- to tailor based on the size of the customers' wallet," he added.

While Idris did not project revenue figures, he hoped the new scheme will bring in revenues. "We remain positive but we don't have a number to put on it," he said.

Transhipped cargo of 353,000 tonnes accounted for about 60 per cent of MASkargo's total overall volume last year.  The airline hopes the fee cut will make Kuala Lumper a more attractive hub for transshipment.