Malaysia Airlines Discloses Plans to Eliminate 6,000 Jobs in Restructuring

by San Antonio Attorney

Malaysia Airlines has laid out its plans for an extensive restructuring that will involve eliminating about 6,000 jobs, as it fights to remain in business. The plan also involves a rebranding.  An estimated 14,000 out of 20,000 employees are likely get offer letters to stay with the reorganized airline.

The national carrier of Malaysia also intends withdraw its Europe and other unprofitable routes, and concentrate more on regional traffic as it reorganizes.

This marks the first tangible move by the new airline CEO, Christoph Mueller, who is working to mend the reputation of the struggling airline after the loss of two aircrafts in different tragedies last year.  The CEO said the company has not been performing well long before the 2014 events. The airline is “technically bankrupt”, according to him. Mueller was hired to lead the carrier’s reorganization.

In March 2014, flight MH370 vanished with 239 people and still missing.  Just four months after, flight MH17 was allegedly shot down killing 298 people on board.  The disasters were the latest indications that the airline had been managed poorly.

The airline aims to stabilize in 2016, and hope to start thriving again by 2017.

Analysts have said earlier that Malaysia Airlines could not compete with other carriers for a variety of reasons, which includes government meddling and poor management.  But cutting of a third of the labor pool was a good sign of a major change.

Mr. Mueller advised earlier that a substantial overhaul was needed as the air carrier was uncompetitive charging 20 percent higher than other airlines. Malaysia Airlines faces tough rivalry from legacy airlines, and also low-cost airlines like AirAsia X.

If you or your business is in a terrible financial situation just like many people and businesses are today, you are probably considering filing for bankruptcy.  Before you file, you should consult a San Antonio Chapter 7 Attorney or San Antonio Chapter 13 Attorney for proper legal advice.

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