Malaysia Airlines ‘Technically Bankrupt,’ Plans Massive Cutbacks
At a news conference, Christoph Mueller, in his first public appearance since assuming the chief executive position, said that the airline will be laying off 6,000 employees of its 20,000, noting that “the decline of performance started long before the tragic events of 2014.”
The airline also plans to sell two of its six Airbus A380 superjumbos.
Mueller said he plans to “stop the bleeding” in the current year, stabilize things in 2016, and begin to grow the airline in 2017. He plans to cut costs by 20%, reduce capacity, cut several unprofitable routes, and refurbish its Boeing 777 and Airbus A330 aircraft used on long-haul routes, maintaining Malaysia’s as “a full-service international carrier connecting continents.”
A planned restructuring will result in the creation of a new company running the airline. The remaining 14,000 employees will be re-employed by that entity. Mueller would not say if the airline, as rumored, will change its name and rebrand.
(Photo: Accura Media Group)