Malaysia Airlines

The Malaysian Government is to carry out a "complete overhaul" of its troubled national airline in an attempt to revive the loss-making company after it was hit by two devastating airliner disasters this year.  It is to become effectively State-owned.

The move to de-list Malaysia Airlines from the Kuala Lumpur stock exchange had been expected since ticket sales slumped in the wake of the disappearance of MH370 on 8 March with 239 passengers and crew.  The airline's crisis deepened on 17 July when another jet, flight MH17, was shot down over Ukraine, killing all 298 people on board. ####

From an international business travel point of view the airline has a fine reputation, part of oneworld and the only airline on what should be a lucrative route between Heathrow and Kuala Lumpur with two flights daily on an Airbus A380. 

Any revitalisation will require cutting back on less-profitable routes, trimming the payroll and probably installing a new management team which might include experienced foreign personnel.  Political considerations will play an important role in the restructuring of the company which, like other state-owned firms, has been used by the government to promote development goals such as affirmative action policies for the majority ethnic Malays.  Some bold decisions are required.  www.malaysiaairlines.com

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