Malaysia Airlines: can it survive?
The carrier announces financial losses and job cuts as it strives to recover from two passenger jet disasters.
Malaysia Airlines is taking drastic measures to regain market confidence – and public trust.
The carrier is reeling from two tragedies that have taken a huge toll – on sales and profits and tarnished its reputation.
Flight MH 370 vanished while flying from Kuala Lumpur to Beijing, with 239 people on board in March.
Four months later, flight MH 17 was shot down over Ukraine on its way from Amsterdam to Kuala Lumpur.
The state-owned parent company has announced losses of $97.4m for the three months to June.
It has reacted to the disaster-driven losses by cutting about a third of its workforce, some 6,000 jobs, as part of a revamp costing $1.9bn.
Reporting from Kuala Lumpur, Al Jazeera’s Rob McBride said: “The fate of its [Malaysia’s] national flag carrier is a national issue as Malaysia prepares to celebrate its Independence Day.
It’s not only the airline’s reputation that has been damaged, but the Malaysia brand has also taken a knock.”
So with profits and passenger numbers in free fall, will the rescue package be enough to save the company?
Presenter: Laura Kyle
Guests:
Mohsin Aziz – an aviation analyst at Maybank Investment Bank.
Oliver McGee – an aerospace engineer and specialist on corporate governance.
Jeff Wise – a writer on science, technology and psychology – and author of the book: Extreme Fear, The Science of Your Mind in Danger