Big changes at Malaysian Airlines after troubled times

Global Business

One year after Malaysia’s government announced a plan to save its financially troubled national airline, the new company that replaces Malaysian Airline System launched today.

The airline had been losing huge sums of money even before its business and image were hit by the twin tragedies in 2014. The disappearance of flight MH370 and shooting down of flight MH17 over Ukraine were huge problems for the company. It forced the government to undertake radical measures it had long avoided in the past. CCTV’s Rian Maelzer filed this report from Kuala Lumpur.
Follow Rian Maelzer on Twitter @rdamael.

Big changes at Malaysian Airlines after troubled times

One year after Malaysia’s government announced a plan to save its financially troubled national airline, the new company that replaces Malaysian Airline System launched today. The airline had been losing huge sums of money even before its business and image were hit by the twin tragedies in 2014. The disappearance of flight MH370 and shooting down of flight MH17 over Ukraine were huge problems for the company. It forced the government to undertake radical measures it had long avoided in the past. CCTV’s Rian Maelzer filed this report from Kuala Lumpur.

More details:

  • The radical overhaul of the beleaguered national airline began last November with the state investment firm Khazanah striking a deal to buy the shares the government didn’t already own and de-listing the company from the stock market.
  • That overhaul included not only the biggest job cuts in Malaysian corporate history. Those rehired by the Newco were offered lesser terms and benefits. Very few turned down the offer though.