Chief executive of Malaysia Airlines, Christoph Mueller, has been quoted as saying the company is “technically bankrupt” in a recent announcement. This follows after the news that their restructuring program will see over a third of their workforce, 6,000 people, losing their jobs.
The new chief executive, Mueller, was assigned in May to try and deal with the failing airline. Malaysia Airlines hit the headlines twice last year; once for the disappearance of flight MH370 and then the disaster of MH17 being shot down by a suspected missile. Even before these two disasters it was thought that Malaysia Airlines was struggling. Mueller was quoted as saying that the decline in performance of the airline was happening well before the tragedies in 2014.
Currently, the airline is operating normally and there have been no cancelled flights or disruptions to service. However, Malaysia Airlines have told the public that they have offered jobs in their new restructured company to just 14,000 of their 20,000 staff. The airline is currently undergoing a strong rebranding with Christoph Mueller heading the business up. This chief executive is known for pulling struggling airlines up and out of the danger of bankruptcy. However, with the tragedies of 2014 this could be his toughest challenge yet.