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Sat Jul 19, 2014, 05:59 AM

The end of Malaysian Airlines?


Could Crash Of Flight MH17 Mean The End Of Malaysia Airlines?

In the aftermath of two air disasters in less than six months, Malaysia Airlines is in serious financial trouble and the end may be nigh. posted

on July 17, 2014, at 9:51 p.m.

Jim Dalrymple II BuzzFeed Staff

After Malaysia Airlines Flight MH17 was shot down Thursday over Ukraine, some observers are wondering if the already-troubled company can survive.

The crash of Flight MH17 comes at an extremely difficult time for Malaysia Airlines. Just four months ago, the company lost Flight MH370. That flight is still missing, and having two high-profile disasters back to back won’t bolster the company’s image, analyst Robert Mann, of R.W. Mann & Co., told BuzzFeed Thursday. “Unfortunately, this is not going to help that situation,” he said.

Mary Schiavo agreed. Schiavo — a former inspector general of the U.S. Department of Transportation who now works as an attorney specializing in plane crashes — spoke with BuzzFeed Thursday and envisioned an airline that will be further wounded by tragedy.
Malaysia Airlines was already a financially “fading” company before the two recent disasters.

Schiavo called Malaysia Airlines a “fading” company that was already destined for the history books even before recent disasters, and financial analysis bears out that conclusion. The airline has been losing money for years, with those losses continuing in 2013 “due to intense competition and its high cost structure.” The airline has been unable to turn things around this year, and is still losing money even as it cuts ticket prices in an effort to fill its many empty seats.


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