Malaysia Airlines’s CEO announced the company’s restructuring that would involve dismissing six thousand of its workers. In fact, the company declared its technical bankruptcy.
In March 2014, flight MH370 carrying 239 passengers from Kuala Lumpur to Beijing disappeared. In July 2014, the MH17 plane was shot down over eastern Ukraine killing the 298 people on board.
“We are technically bankrupt,” Christoph Mueller, the company’s head, said. “The decline of performance started long before the tragic events of 2014.”
In the face of increased competition, losing two airplanes further aggravated the company’s problems.
Mueller’s appointment by the Malaysian national investment fund, Khazanah, was aimed at restructuring Malaysia Airlines. Earlier, Mueller was invited to work at three European air companies for the same reason.
The new Malaysia Airlines’ CEO stated that the company will either replace large planes with smaller aircraft or cut the number of flights. In 2015, the airline will try to improve the current conditions, further, in 2016, it intends to stabilize the situation and then, in 2017 – to resume growth. The company has scheduled rebranding for September 1. It is still unknown whether it will change its name and logo.
