Tag Archives: Malaysia Airlines

Has a part of missing Malaysia Airlines flight MH370 been discovered off Reunion Island?

Malaysia Airlines (Kuala Lumpur) flight MH370, from Kuala Lumpur to Beijing with 239 passengers and crew members on board, disappeared somewhere in the Indian Ocean on March 8, 2014 based on the data received from the aircraft.

A possible part, possibly a 777 flap, has been found and may be from the missing pictured Boeing 777-2H6 ER 9M-MRO (msn 28420). The debris was discovered off the coast of St. Andre on Reunion Island in the western Indian Ocean. Prevailing currents could have pushed the debris to this area.

The debris is being inspected by the authorities for confirmation. Boeing is also involved.

Read the full report from CNN: CLICK HERE

More information to follow.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 777-2H6 9M-MRO (msn 28420) lands at Stockholm (Arlanda) before the tragic disappearance.

Map: Google Maps.

Reunion Island

The one year tragic anniversary of the downing of Malaysia Airlines flight MH 17

KLM MH17 Mesage

Malaysia Airlines (Kuala Lumpur) today issued this statement concerning the one-year anniversary of the tragic shoot-down of flight MH 17:

Malaysia logo-1

July 17 marks the one year anniversary of flight MH 17.

Malaysia Airlines, together with the governments of Malaysia, Australia and the Netherlands, are honoring those lost by offering our deep condolences to families and friends affected by this tragedy.

In observance of the one year anniversary, the Government of Malaysia held a memorial event on July 11, 2015, at Kompleks Bunga Raya, KL International Airport, Sepang. The Government of Australia and the MH 17 Aviation Disaster Foundation, with support from the Government of Netherlands, will also be having a remembrance ceremony on July 17, 2015, in Canberra and Nieuwegein respectively.

Malaysia Airlines has made arrangements for family members to attend the memorial event at one of these countries by providing flight tickets, accommodation and transfers to the event venue.

The airline would like to take this opportunity to thank the Government of Malaysia, Australia and Netherlands, our many international friends, our employees, our loyal customers, and the people of Malaysia who have provided tremendous and heartfelt support to Malaysia Airlines and the families of the passengers and crew during this difficult time.

Today, we remember and honor those lost and keep their family and friends in our hearts.

WE REMEMBER. WE HONOR. ALWAYS AND FOREVER.

MH 17, July 17, 2014

Top: In support, KLM Royal Dutch Airlines issued this statement and symbol.

Note: The government of the Netherlands is preparing to issue its aircraft accident report on the intentional destruction of flight MH 17.

Malaysia Airlines is “technically bankrupt”, will cut 6,000 jobs and sell two Airbus A380s

Malaysia Airlines (Kuala Lumpur) is “technically bankrupt” according to its new CEO Christoph Mueller, formerly of Aer Lingus. Mueller announced today at a press conference the company will cut around 6,000 jobs in order to reduce costs. The airline continues to operate normally.

The airline will also rebrand on September 1. Mueller did not want to offer any details on the rebranding.

Malaysia logo-1

Mueller also stated the new airline could break even by 2018.

A full review is underway on all routes and some routes will be dropped.

As previously reported, a new legal entity, Malaysia Airlines Bhd (MAB), will replace the technically bankrupt Malaysian Airline System Bhd (MAS).

Read the full report from the BBC: CLICK HERE

An analyst comment from Ken Odeluga, a senior market analyst at www.cityindex.co.uk

City Index logo
Christopher Mueller’s strategic comment very much suggests the recently appointed CEO is trying to afford himself maximum flexibility in the difficult months ahead.

There’s a moderate possibility the airline will in practice not be formally declared bankrupt.
We note Malaysian bankruptcy law provides a much lower threshold to judge going concerns than would apply to Malaysian Airlines.

Its balance sheet is remarkably clean under the circumstances with about $810m of accumulated losses including $75m of hedge accounting.

Aside from that, there is no other red ink at all—no significant impairments or other risky effects and its most recent pre-tax margin at 17% is well above MA’s internal run-rate.
The burdens that exist are of course not inconsiderable, but the point is, the airline has been carrying them for longer than its crisis has been going on.

Its bigger problems involve the significant depreciation in the ringgit against the dollar that continues to shave off its room to manoeuvre, not to mention political interference, powerful unions, and more than a whiff of alleged corruption.

MA’s cost base could be about 20% higher than those of its rivals.

Mueller will need in the near-to-immediate term, all his negotiating, persuasive and coercive skills in dealing with all sorts of stakeholders—those which are legitimate and those for whom that term is more arguable.

At least there does now appear to be a will in the State apparatus that wasn’t there a year ago.

Mueller will have the ear of those strong enough to bulldozer parties which might attempt block the root-and-branch reform of the airline that will be necessary to make it what it may never really have been—competitive.

Copyright Photo above: SPA/AirlinersGallery.com. Malaysia Airlines is reviewing its fleet of 13 Boeing 777-200 ERs and will also attempt to find buyers for two of its six Airbus A380s. Airbus A380-841 9M-MNB (msn 081) approaches the runway at London’s Heathrow Airport.

Malaysia Airlines aircraft slide show: AG Airline Slide Show

Video:

Malaysia Airlines is placed into receivership, operations continue

Malaysia Airlines (Malaysian Airline System Berhad-MAS) (Kuala Lumpur) today (May 25) was placed into receivership as the company transitions to a new company (Malaysia Airlines Berhad-MAB). The transfer of assets will occur on September 1, 2015. The restructuring could result in the loss of a significant number of jobs as the national carrier downsizes under its 12-point MAS Recovery Plan.

The airline issued two statements:

Malaysia logo-1

The first statement:

Khazanah Nasional Berhad, the sole shareholder of Malaysian Airline System Berhad (MAS), today (May 25) announced the appointment of Dato’ Mohammad Faiz Azmi as Administrator for MAS, effective May 25, 2015.

The appointment of the Administrator will facilitate the transfer of selected assets and liabilities from MAS to the new company Malaysia Airlines Berhad (MAB), effectively by September 1, 2015. MAS continues to operate throughout the period up to and including August 31, 2015, after which MAB will operate the business of the airline from September 1, 2015 onwards.
The appointment is a voluntary undertaking by Khazanah and is made pursuant to the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act), which was passed by both houses of the Malaysian Parliament last year. The MAS Act provides for an effective, efficient and seamless means to transition the business, property, rights, liabilities and affairs of MAS to MAB.
The transition from MAS to MAB is a key component of the 12-point MAS Recovery Plan, which was announced on August 29, 2014, to restructure the national carrier and set it on a path towards sustainable profitability. The MRP also includes conditional investment funding by Khazanah of up to RM6 billion, disbursed on a staggered basis and subject to the fulfillment of strict conditions.

The second statement:

Christoph Mueller, Chief Executive Officer of Malaysian Airline System Berhad (MAS) and CEO-designate of the new airline, Malaysia Airlines Berhad (MAB), assures customers that MAS operations continue as normal with the appointment of the Administrator.

Mueller states, “I assure you our operations are very much business as usual. All MAS flights, schedules, and reservations continue to operate as normal. We remain committed to serving you with our world-class Malaysian Hospitality, and look forward to welcoming you on board Malaysia Airlines.”

“This appointment does not affect our daily operations or existing reservations. You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honored, and that our Enrich frequent flyer program continues with Miles and status preserved”, Mueller added.

Today, Khazanah Nasional Berhad (Khazanah) announced the voluntary appointment of an Administrator for MAS. This appointment reflects the continuing and considerable effort to September 1, 2015, when MAB becomes operational with a new business model and a new management team, led by Mueller.

The appointment by Khazanah, Malaysia’s sovereign fund and the sole shareholder of MAS, is backed by the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act) enacted by the Government of Malaysia. Under the MAS Act, the Administrator plays a critical role to facilitating the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.

Copyright Photo below: SPA/AirlinersGallery.com. The Airbus A380 are likely to be sold with the restructuring. Malaysia Airlines Airbus A380-841 9M-MNF (msn 114) (100th A380 logo) climbs away from London (Heathrow).

Malaysia Airlines aircraft slide show: AG Airline Slide Show

For Sale: Malaysia Airlines to sell its Airbus A380s, four Boeing 777-200 ERs and two 747-400Fs

Malaysia Airlines (Kuala Lumpur) is planning to downsize its fleet. The financially struggling carrier has put its six Airbus A380s, four Boeing 777-200 ERs and two Maskargo Boeing 747-400F freighters up for sale according to CNN.

The sale of the Airbus A380s will test the Super Jumbo market.

Read the full report: CLICK HERE

Copyright Photo: AirlinersGallery.com. Malaysia Airlines’ Airbus A380-841 9M-MNC (msn 084) taxies at London’s Heathrow Airport.

Malaysia Airlines aircraft slide show: AG Airline Slide Show

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Malaysia Airlines to drop all service to Frankfurt

Malaysia Airlines (Kuala Lumpur) as part of its reorganization, is dropping the Kuala Lumpur – Frankfurt route on May 29 per Airline Route.

The airline operates the Boeing 777-200 ER on the historic route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-2H6 ER 9M-MRA (msn 28408) completes its final approach to the runway at Los Angeles International Airport.

Malaysia Airlines aircraft slide show: AG Airline Slide Show

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What will the new Malaysia Airlines look like? “NewCo” to start on July 1 with only select employees

Malaysia Airlines (Kuala Lumpur) is reorganizing and reinventing itself (code named NewCo) under the former CEO of Aer Lingus and now the new CEO Christoph Mueller who will take control of the struggling carrier on May 1. The new Malaysia Airlines will take to the skies on July 1 as an reinvented airline with only specially invited employees. Will this lead to a new name and/or brand? The latter is very likely.

Image Below: Will the Kelantan kite logo survive the makeover? The red and blue kite logo was updated in October 1987 from the previous all red kite logo of Malaysian Airline System (MAS) of 1972. According the airline the slanted updated 1987 logo was to “express grace in motion but also thrust and dynamism”. So far the kite has also been the symbol of rebirth for the airline (see video below).

Malaysia kite logo

Previously on March 20 the board of directors outlined this leadership change and the restructuring effort:

Malaysia logo-1

The Board of Directors of Malaysian Airline System Berhad (MAS) announced that Christoph Mueller will assume the post of Managing Director and Group Chief Executive Officer (CEO), effective May 1, 2015

Ahmad Jauhari Yahya, the current Managing Director and Group CEO, will step down from his executive position on April 30, 2015, and be appointed as a Non-Executive Director on the Board, for a period from May 1, 2015 to December 31, 2015.

Mueller is currently a Non-Executive Director on the Board and CEO-designate of the new company Malaysia Airlines Berhad (NewCo).

The decision to bring forward the leadership transition was made by the Board at its meeting on March 18, 2015. Subsequently, the Board sought, via a letter dated March 20, 2015, and received approval on the same day from Khazanah Nasional Berhad (Khazanah), the sole shareholder of MAS, for Mueller’s appointment and related matters.

The accelerated leadership transition will enable Mueller to be in a position to lead the overall MAS restructuring effort as it enters one of its most critical phases. It will also provide him with the executive capacity and an appropriate timeframe to prepare NewCo to begin operations. This will have a positive impact on the long-term MAS restructuring effort and provide the best possible chance for a successful turnaround.

Tan Sri Md Nor Yusof, Chairman of MAS, said: “We are pleased to welcome Christoph and look forward to his leadership, as the new Managing Director and CEO, in driving the effort to rebuild and restore our national icon to its rightful status. We would also like to thank Ahmad Jauhari for his dedication and selfless service to MAS from the first day of his appointment on 19 September 2011. He will remain on the Board as a Non-Executive Director to help ensure a smooth transition to NewCo. He has our utmost gratitude and all of us at MAS wish him the very best.”

Christoph Mueller said: “I am honored by the trust placed in me. MAS is not just the national carrier of Malaysia, it is a symbol of national pride, and loyalty and affection towards the airline runs deep among Malaysians. I look forward to working on the restructuring hand-in-hand with our employees, unions, management and the Board to restore the airline’s profitability. All these stakeholders will be asked for their contribution in a very ambitious turnaround plan, but with the continued support of the Malaysian Government, Khazanah, our loyal customers and the travelling public, we will ultimately be successful.”

Following the leadership transition, NewCo will be ready for the migration of MAS’ operations, assets and liabilities on July 1, 2015.

NewCo employees will commence work on September 1, 2015 together with Mueller, who will officially assume the position of NewCo Managing Director and Group CEO on that date.

To affect the employee migration, NewCo will issue employment offer letters to selected MAS employees on June 1, 2015. On the same date, MAS will issue employment termination letters with a three-month notice to all its employees. This variation from the earlier schedule of April 1, 2015 has been approved by Khazanah on March 20, 2015.

The process of identifying the pool of staff that meets NewCo’s requirements is underway, following the completion of a comprehensive talent assessment exercise in February 2015.

Exiting employees will have access to the training and placement services provided by the Corporate Development Centre, which will be operational by the time of the issuance of the termination letters.

Above Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8H6 9M-MSG (msn 40149) in the 2010 livery arrives in Bangkok.

Malaysia Airlines aircraft slide show: AG Airline Slide Show

Below photo: Malaysia Airlines. Malaysia Airlines has been using the hashtag #KEEPFLYING as its new advertising theme. The theme really has a double meaning for the airline trying to survive and reinvent itself after two tragic Boeing 777 crashes in one year.

Malaysia #KeepFlying

Video: Malaysia Airlines. The airline is attacking its tragic year of 2014 head on and not trying to run away from it:

A look back at 2014, our comeback story: