Business World

Friday 27 April 2018

Former Aer Lingus CEO says that Malaysia Airlines is "technically bankrupt"

Christoph Mueller
Christoph Mueller

Al-Zaquan Amer Hamzah

Christoph Mueller, the newly appointed chief executive of embattled Malaysia Airlines, said yesterday the carrier is "technically bankrupt", underlining the case to cut a third of its workforce, scrap some international routes and review its long-haul fleet.

The announcement follows the airline's twin air disasters last year that ultimately led to its nationalisation. Mr Mueller, the former head of Aer Lingus, took up his post in May.

"We are technically bankrupt ... the decline of performance started long before the tragic events of 2014," said Mr Mueller.

Already squeezed into years of losses by stiff regional competition, the carrier was seriously affected last year by the two separate jet disasters.

Mr Mueller was making his first public appearance as CEO since being hired last month by the carrier's owner, Malaysian state fund Khazanah, to lead the restructuring.

The carrier also confirmed plans to cut 6,000 jobs are now being implemented. (Reuters)

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business