Malaysia Airlines Is “Technically Bankrupt”: Carrier Plans 6,000 Job Losses

Newly-appointed CEO of Malaysia Airlines, Christoph Mueller, has stated that the company is bankrupt as it begins a process of restructuring.

The airline has recently experienced two high-profile air disasters, the disappearance of flight MH370 in March 2014 before flight MH17 was shot down over Ukrainian airspace in July 2014.  However, Mueller explained that the organisation’s financial difficulties had started long before 2014.

The chief executive also added that the company would look to re-brand in the autumn, along with a reduction in the workforce from 20,000 to 14,000.  The Malaysian state fund Khazanah is thought to have brought Mr Mueller in to lead a restructuring strategy.   Mr Mueller has previously been involved in the airline industry, implementing the recoveries of Lufthansa, Sabena, and Aer Lingus.

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Pauline Rigby

About Pauline Rigby

Pauline Rigby is Head of the Corporate and Restructuring team at Forbes Solicitors. Pauline’s blogs cover a wide range of corporate issues, specifically areas including company formation, banking, joint ventures and shareholder matters, contractual matters and equity fundraising or investing.
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