MH losses widen

KUALA LUMPUR Crisis-stricken Malaysia Airlines said Friday its third-quarter loss widened 54% in the wake of two devastating air disasters that have sent its business into a tailspin and prompted a government rescue.
The company’s net loss for the three months ending September 30 reached MYR575.6 million (USD170 million), expanding from a MYR373.2 million deficit in the same period last year.
The result marks the seventh straight quarterly loss for Malaysia Airlines, which already had struggled to stay competitive even before the mysterious loss of flight MH370 and the 18 July shooting down over Ukraine of flight MH17.
AUSTRALIA-MALAYSIA-CHINA-MALAYSIAAIRLINES-TRANSPORTIn a filing to Malaysia’s stock exchange, the airline blamed “the double impact of the MH370 and MH17 incidents and the continued intensified (industry) competition” for a worsening performance that also saw operating revenue fall 12% to MYR3.3 billion.
“Malaysia Airlines continues to struggle despite efforts to reduce the financial bleeding,” it said.
The company’s crisis has prompted a Malaysian government bailout.
State investment fund Khazanah Nasional, which owns around 70% of the carrier, in August announced plans to acquire the remaining shares, de-list the airline, and try to resuscitate it.
The company would slash 6,000 jobs – 30% of it’s workforce — trim its route network, and replace its CEO, Khazanah said, and it will pump MYR6 billion into the carrier, hoping to bring it back to profitability.
The carrier has controversially been kept aloft for years by transfusions of public money while posting huge losses, with analysts blaming poor management, unwise business decisions, and government meddling.

sourced:traveldailynews.asia