Malaysian Airlines is losing $2 million dollars a day and it is having trouble filling flights in the aftermath of its two plane crash, an industry expert asserts.
"The southeast Asia air carrier burns its cash reserves at nearly $2.16 million each day and operations are losing about $1.6 million a day" writes Howard University professor Oliver McGee reports Mashable.
MOSCOW, August 26 (RIA Novosti) - Malaysian Airlines has not been able to turn a profit for the last five years, even before the two incidents took place reports Mashable. Malaysian Airlines is now planning a revival, but the cost of the venture could be as high as $1.5 billion over the next 3 years according to the Malaysian Star.
“Wvery job is under review, even the senior team at MAS (Malaysian Airlines)” said an executive to the Star There are also plans to let go of approximately 5000 people and cut low-profit routes. At the most extreme, the company could possibly change their name and rebrand.
The first tragedy struck when MH370, carrying 239 people, including one Russian citizen, lost contact with air traffic controllers under mysterious circumstances on March 8. At least 26 nations took part in the massive hunt for the missing aircraft. The aircraft has still not been found.
The second tragedy to strike the airlines happened when flight MH17 crashed in the Donetsk Region of Ukraine and killed all passengers and crew on July 17 en route from Amsterdam to Kuala Lumpur.
The investigation into the circumstances of the crash has been seriously obstructed by continuing clashes between independence supporters and Kiev forces in eastern regions of Ukraine.
Ukrainian authorities claim the plane was shot down by independence supporters, whereas the latter say they do not have necessary equipment to hit a target flying this high.