Search
 

Malaysia Airlines is 'technically bankrupt' after 2014 disasters

Malaysia Airlines said its starting a corporate revamp with a hard reset as it terminates about 6,000 jobs and seeks to cut costs by 20%.

By Chong Pooi Koon, Bloomberg | Updated on June 01, 2015
Malaysia Airlines CEO Christoph Mueller speaks during a press conference in Sepang, Malaysia on June 1, 2015. Mueller says the new Airline will start operating from Sept 1,2015. Mueller, who started work at Malaysia Airlines on May 1, said the restructuring is a "hard reset" for the airline that will reduce its costs by 20% and give it an opportunity to grow again. (AP Photo/Vincent Thian)

(Bloomberg) — Malaysia Airlines Bhd. said it’s starting a corporate revamp with a “hard reset” as it terminates about 6,000 jobs and seeks to cut costs by 20% to return to profitability after two air disasters last year.

The carrier invited at least 14,000 employees to join its new company as part of a turnaround that includes adjusting the size of operations and renegotiating key contracts, the company said Monday. The old structure, Malaysian Airline System Bhd., will cease operations in August, and selected assets and liabilities will be transferred to the new company.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.