Malaysia Airlines ‘technically bankrupt’ as 6,000 jobs to go

The new boss of Malaysia Airlines has claimed the carrier is “technically bankrupt”, following two plane accidents in 12 months. Christoph Mueller has confirmed that 6,000 jobs will be cut at the troubled airline - ahead of a rebrand in September which aims to repair the damage caused by the losses of MH370 and MH17. Consumer confidence was badly affected when Flight MH370 disappeared with 239 people on board in March 2014, and just four months later, Flight MH17 was downed by a suspected ground-to-air missile over Ukraine - killing 298 people.

The decline of performance started long before the tragic events of 2014.

Christoph Mueller, head of Malaysia Airlines

The tragedies led to Malaysia Airlines being taken into state ownership, but analysts claim the company has been mismanaged for years - a sentiment echoed by Mueller. Stiff regional competition has led the company to post losses for several years - and in a statement, the airline pledged to “stop the bleeding” in its finances by the end of 2015, in the hope it will return to growth by 2017. Mueller, nicknamed The Terminator in Ireland for the job cuts he implemented at Aer Lingus, is expected to reduce the number of long-haul routes offered from Malaysia to Europe, and focus on regional services.

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