Malaysia Airlines to 'file for bankruptcy or go private' in turnaround plan
Malaysia Airlines set to present a turnaround plan later this week which could see it filing for bankruptcy or taken private ahead of major restructuring
Embattled Malaysia Airlines could file for bankruptcy this week as it struggles to stay afloat after two tragic disasters in less than six months.
The airline is due to present a turnaround plan later this week to Khazanah Nasional, Malaysia's sovereign wealth fund which holds a majority stake.
Some of the proposals will include taking "the company private or allowing it to go bankrupt and then renegotiating union contracts", Bloomberg reported, citing a source close to the matter.
The airline has seen its share price decline 35 per cent in the first half of the year following the loss of Malaysia Airlines Flight 370 over the Indian Ocean and the tragic crash of the MH17 in eastern Ukraine last week, killing 298 people and taking the total death toll to 537 people.
The carrier reported a net loss of 443 million ringgit (£81 million) in the first quarter, widening from a loss of 279 million ringgit (£51 million) in the same quarter a year ago. Before the fatal crash and the disappearance of the 370, Malaysia Airlines had been struggling against competition from rival low-cost airlines in its home markets, racking up losses of more than $1.4 billion since 2011.
Mohshin Aziz, an analyst at Maybank in Kuala Lumpur, said the airline will not survive more than a year in its current form without "significant" funding, while others warned that a cash injection may not be enough to fix the "brand".
Sales of the tablet are set to fall again, say analysts
Follow the latest updates from the Monday night Premier League fixture
Met Police confirm there was a 'minor disturbance' and no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Concerns raised phenomenon is threatening resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
Peter Biaksangzuala died from his injuries in hospital on Sunday
- 1 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 2 Star Wars memorabilia called a 'bit of plastic' on Antiques Roadshow by Fiona Bruce valued at £50,000
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Sophia Loren: How I rejected Cary Grant and 'pulverised' Marlon Brando with my eyes
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
'Russian submarine spotted' by Swedish military off coast of Stockholm
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Oscar Pistorius sentence: Athlete's wealth and notoriety provoke an overdue debate on South African prisons
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...