Malaysia Airlines CEO says carrier "technically bankrupt", set to cut jobs, routes
"We are technically bankrupt...the decline of performance started long before the tragic events of 2014," Christoph Mueller said, speaking at a news conference. Already squeezed into years of losses by stiff regional competition, the carrier was seriously affected last year by two separate jet disasters.
Mueller was making his first public appearance as
The carrier on Monday said its new legal entity is Malaysia Airlines Bhd (MAB), replacing the previous
"We will remain a full service international carrier connecting continents," Mueller said, adding that while some international routes will go there were no plans to turn it into a regional carrier. He also said there would be no cutbacks in domestic network.
Capacity measures would include "reducing aircraft size on certain routes, reducing frequency on certain routes, and certain cases abandoning the route altogether," he said.
As part of the restructuring, the airline will review the fleet of
Before joining the Malaysian carrier, the 52-year-old German national successfully restructured Ireland's state-backed Aer Lingus and spearheaded a revamp at Lufthansa . The executive told
In its last earnings announcement as a public company, the airline recorded its worst quarterly loss since late 2011 as passenger numbers and yields dropped further after the loss of the two jets.
Flight MH370, carrying 239 passengers and crew, disappeared in March last year, in what has become one of the greatest mysteries in aviation history. Last July, Flight MH17 was shot down over rebel-held territory in eastern Ukraine, and all 298 aboard were killed.
(Image: Wikimedia)
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