While investigators still hunt for the missing MH370 flight, Malaysia Airlines are grappling with profit losses, job cuts and concurrent PR scandals.
On the six-month anniversary of the disappearance of MH370, investigators have turned their focus on searching the 1000 possible flight paths the plane may have taken before it allegedly plummeted into the Indian Ocean.
While officials fear the worst, announcing to family members that they shouldn’t harbour any false hope over finding plane debris or wreckage, Malaysian airlines have scrambled to repair the collateral damage MH370, along with the fatal MH17 crash, have left.
Jobs and losses
In the last quarter, crisis-stricken Malaysia Airlines have experienced a 305.7 million ringgit ($97.2 million) loss in the April-June quarter, compared to the 175 million ringgit loss experienced in the same period last year.
“The impact of the MH370 incident and intensified competition resulted in a 6.7 per cent drop in bookings,” the airline said in a statement to the Malaysian stock exchange.
The airline has also warned that outcomes for the second quarter are said to be worse with losses predicted to double over the coming months.
The forecast has prompted the airline to initiate its recovery plan, which began with a complete state takeover of the company that was once a third privately owned.
The airline will also be appointed a new Chief Executive.
The $1.9 billion (US) plan will further see 6000 workers made redundant, equating to a loss of 30 per cent of the company’s work force and long haul services will be discontinued.
Nonetheless the recovery plan is already at a rocky start.
The company’s marketing plan has managed to provoke a storm of controversy with its “My Ultimate Bucket List” campaign.
The campaign called on Australian and New Zealand travelers to write their bucket list, or places to see “before you die”, in the hopes of winning flights to Malaysia and an Ipad.
However, in the wake of this year’s two major airline disasters that have claimed 537 lives, it wasn’t long before media and the public took to print and platform to barrage the airline with complaints.
The controversial campaign has since been rebranded to “your ultimate to-do list” and Malaysia Airlines were forced to release a statement on their retraction:
“The competition had earlier been approved as it was themed around a common phrase that is used in both countries. The airline appreciates and respects the sentiments of the public and in no way did it intend to offend any parties.”
While the competition may have been salvaged, the future of the airline and its profitability yet remains dubious.
Do you think Malaysia Airlines has a chance to exceed its losses in the next quarter?
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