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Malaysian Airlines “technically bankrupt” as 6,000 employees risk loosing jobs


SomaNet News Archive

(By Bonny Apunyu)

While announcing a restructuring program and plans to cut around 6,000 jobs, the Chief executive of Malaysia Airlines said the troubled airlines is "technically bankrupt." Last year, Malaysian airlines suffered two huge disasters which one plane reportedly disappearing in Indian Ocean and another being shot down over Ukraine air space.

BBC reported Monday that Malaysian airlines said  it had "offered jobs" to 14,000 of its 20,000 workforce. The move was expected and follows the appointment of new chief executive Christoph Mueller in May.

"We are technically bankrupt," Mr Mueller told a news conference. "The decline of performance started long before the tragic events of 2014." In March last year, Malaysia Airlines flight MH370 disappeared with 239 passengers and crew aboard. The plane is still missing. Four months later, flight MH17 was shot down by a suspected ground-to-air missile while in Ukrainian airspace, with the loss of 298 passengers and crew.