Malaysia Airlines Bankrupt: 6,000 Employees lose jobs; Major stakeholder Khazanah $1.9-Billion plan to bring back profit in 3 Years

With news that the company is laying off 6,000 employees, Malaysia Airlines bankrupt makes headlines. Aside from losing about one-third of its workers, it will also de-list from KL's Stock Exchange. This will span a minimum of three years, being that it is part of the government plan for restructuring. The costs of which is estimated to be at $1.9 billion.

Last year, two tragic incidents came upon Malaysia Airlines, which resulted to lost planes. The first was in Indian Ocean and the other was in the warzone in Ukraine. According to a recent report, Khazanah Nasional Bhd, the state holding company which owns the airlines, a 12-point recovery plan is on its way.

The plan involves splitting Malaysia Airlines into two groups, where one would concentrate on profitable regional routes. This will enable partaking in long flights from partner airlines, being in Oneworld alliance.

Bernama, a state news agency, has noted that Tan Sri Azman Mokhtar, the managing director of Khazanah, intends for the new company to start becoming profitable in three years' time. In 2018-2019, it may be re-listed on the stock exchange.

In another report, Christoph Mueller, the CEO of Khazanah, shares a statement, "We are technically bankrupt and that decline of performance started long before the tragic events of 2014." As mentioned, there will be a cut of 6,000 jobs from the carrier, leaving only 14,000 in the workforce.

Mueller further shares about measures in terms of capacity as he says it involves, "reducing aircraft size on certain routes, reducing frequency on certain routes, and certain cases abandoning the route altogether."

With Malaysia Airlines bankrupt, it will be a tough road for the carrier to get back on its feet. Top management, however, is working hard to devise ways to make this an efficient process. In March last year came the accident of Flight MH370, which had passengers and crew at 239 total. In July 2014, Flight MH17 had 298 people in it, who were killed over eastern Ukraine warzone.