Formation of a new company

Malaysian Airlines System plans to split its international and cargo services from its domestic operations as a part of the firm’s fight to turn the table of loss to profit, and the are doing it by forming a new company with a working name of Newco to handle the international/cargo side. The split will allow investors to emphasize international passenger services, the company said. This decision was taken by the company just after announcing its loss of MYR 557 for the quarter year and said that its operation cost increased to 34% from 27% the previous year. Is this the right time for the company to take such a decision to create another company to handle the international cargo services alone? The formation of a new company may again incur cost and since the company is running in loss it needs to bring funds from outside which may again increase the liabilities of the company. And as every firm say assets are far much better than liabilities…

Is it necessary for the company to got ahead with their current plan of forming a new company rather than looking at different ways and bringing out the solutions to get back the company to the profit side. How would this decision at a crucial time like this, help the company in any means? Is there any other source that may improve the situation of the company? The same fund could be utilized in much better way say like investing it in some other areas of concern to uplift the company,,, what could be the possible areas..?
(http://findarticles.com/p/articles/mi_m0CWU/is_2006_Feb_24/ai_n16084864)
(http://findarticles.com/p/articles/mi_m0CWU/is_2005_June_1/ai_n13791812)