Malaysia Airlines is in great difficulty. Since the two crashes suffered in 2014 that damaged its previously excellent reputation, the airline is facing a profitability issue that is pushing it to change its business model to avoid bankruptcy. Back on the recent history of this airline which had everything to become the new Asian major.

Two extremely deadly crashes suffered during 2014

2014 was a deadly year in air travel. Not necessarily because there were more crashes or more deaths in absolute terms, but because they affected “our” world, the Western world. These are not old African 727s or Russian-made planes, but Airbus and Boeings of quite respectable airlines that have crashed. Also, Malaysia Airlines has been the victim of two rather controversial crashes: the first one of flight MH370, which disappeared from radar screens and was never found, and the second one of flight MH17, which was shot down by ground-to-air missiles during a cruise over Europe. Both situations are quite rare in modern air transport.

The unexplained disappearance of flight MH370

The disappearance of flight MH370 is and will remain one of the great mysteries of air transport.
This flight, which was supposed to fly from Kuala Lumpur (Malaysia) to Beijing (China) on March 8, 2014, disappeared over the Andaman Sea with its 227 passengers and 12 crew members: the transponder was cut off (a priori, voluntarily) and the aircraft continued to fly for several hours over the water.
No trace of the aircraft has been found, which leads some people to come up with strange but plausible theories about Diego Garcia.

The responsibility of Malaysia Airlines in the accident is difficult to establish: was there a lack of control of the pilots (faulty recruitment)? Was there a maintenance failure that caused some of the electrical circuits, such as the transponder, to shut down?
In any case, the biggest mistake of the airline was the disastrous communication, a mix between corporate crisis communication and government communication, without any clear roles and responsibilities.

The military shooting down of flight MH17

The other tragedy suffered by Malaysia Airlines in 2014 was the downing of Flight MH 17 on July 17 against the backdrop of the Ukraine-Russia war, most likely by a missile.

Even if Malaysia Airlines could not do anything for MH17, in the head of the passengers, MH has become an unsafe airline, plagued by crashes…

A new strategy based on a colossal tightening of the network

Malaysia Airlines, according to its new CEO istheoretically bankrupted according to his statements on June 1, 2015. Malaysia Airlines finds itself in a financial difficulty: a low load factor, planes on the hands, crews too.
The airline is therefore on the verge of a major change of strategy.

An operator that will become more regional than global

Until 2014, Malaysia Airlines had positioned itself as a modern airline, with a very high level of service, low prices and maximum safety, following the example of the Gulf airlines, and competing with the European majors on price and the Asian majors on service.
The airline has had tremendous success, and now operates the Airbus A380 on its main international routes.
However, following the two disasters, the airline found itself with flights… almost empty, like in this picture:

So, Malaysia Airlines will make a major change of strategy in the coming weeks: elimination of most intercontinental (long-haul) routes, disposal of a significant number of twin-aisle aircraft (and of all A380s).
This change in strategy will allow the airline to reduce its staffing and structural costs abroad and to rationalize the use of its on-board personnel and its fleet.

Clear cuts in the payroll

The change of strategy of Malaysia Airlines is accompanied by a better use of space, MH will be able to lay off 6000 employees, or 30% of its workforce to regain some competitiveness.
This dismissal is accompanied by a change of legal entity for the remaining 14,000 employees, who will therefore be retained but with reduced employment conditions (different wages and working hours)

A new brand and a new logo for Malaysia Airlines

According to its CEO,Malaysia Airlines must reinvent itself. So, in the coming weeks, Malaysia Airlines could change its name and logo, according to sources close to the airline, and to stick to its new Asian medium-haul strategy.

What do you think of this new strategy and future name change? Can it save the airline?