Malaysia Airlines may seek fresh start with new name after being hit by twin disasters of MH17 and MH370
The disappearance of flight MH370 in March and the missile attack on MH17 over Ukraine shares have seen shares fall 35%
Monday 28 July 2014
Malaysia Airlines could change its name in a radical attempt to rebrand and rebuild itself following two disasters in the past four months that have left the business on the brink of collapse.
The airline, which is majority-owned by the Malaysian government, has started a strategic review, which could see the owners turn to investment from rival airlines to fund the plans to regain travellers’ trust.
Since the disappearance of flight MH370 in March and the missile attack on MH17 over Ukraine shares have been down 35 per cent so far this year as investors fear for the firm’s future.
To improve its image the flag carrier’s commercial director, Hugh Dunleavy, has also called for changes to international rules on where aircraft can fly, suggesting there must be a single global body to advise airlines on safe airspace.
“Our majority shareholder, the Malaysian government, has already started a process of assessing the future shape of our business and that process will now be speeded up as a result of MH17.
“There are several options on the table but all involve creating an airline fit for purpose in what is a new era for us, and other airlines,” he told the Sunday Telegraph.
Sources have also suggested that additional private investment could come from rivals and would not be the first time flag-carrying airlines have ventured outside their own territories. British Airways and Iberia, Spain’s flag-carrying airline, formed a joint venture in 2011.
However, any future investor will be keen to see how passengers react to making future bookings with Malaysia Airlines, and will want to know how many took up the airline’s offer of a refund for any trip booked for later this year, with all fees waived.
The offer ended last Thursday but the airline has not revealed how many passengers took them up on it.
Around £1.8bn was raised in 2013 by Malaysia Airlines and industry analysts believe the company is well-funded, but many are hoping that an outside investment will help to return confidence to the organisation.
Others have suggested that the government could step in and privatise the business to take away its operations from the glare of the stock market. Its investment vehicle has a 69 per cent stake in the business and had been looking at a potential takeover before the MH17 crash which killed 298.
However, the airline had suffered three consecutive years of losses before the disappearance of flight MH370, due to fierce competition from rival low-cost airlines in its home markets.
Mr Dunleavy added: “With the unwavering support we have received from the Malaysian government, we are confident of our recovery, whatever the shape of the airline in future.”
On the future of safety in the skies, he said: “We need one body to be the arbiter of where we can fly. Airlines such as ours should be left to focus on the quality of our product in the air, not on the air corridor we fly in, which should be guaranteed as safe passage.”
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
- 4 The top 50 cities for young people to live in
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...