Finally someone being honest about MAS

From Reuters:

The newly appointed chief executive of loss-making Malaysia Airlines said on Monday the carrier is "technically bankrupt", underlining the case for a restructuring to cut a third of jobs, scrap some international routes and review its long-haul fleet.

"We are technically bankrupt...the decline of performance started long before the tragic events of 2014," Christoph Mueller said, speaking at a news conference. Already squeezed into years of losses by stiff regional competition, the carrier was seriously affected last year by two separate jet disasters.

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. Khazanah, previously the majority owner, took the airline private last year as part of a 6 billion Malaysian ringgit ($1.63 billion) plan aimed at returning it to profit within three years.

Unfortunately MAS business story has come to this.  It's previous business model was unsustainable and the air tragedies have just been unrelenting.

I guess the government has had enough and has bit the bullet by taking the hard approach and even enacting laws to help MAS to get competitive.  The job cuts will hit the Malaysian economy pretty hard.  Already CIMB is looking to undergo job cuts as well.

I already quoted previously that Airline tragedies likely doom the airlines it happens to.  Air Asia seems to be the only exception to the rule.  I don't know if it is their business model or branding but they seem to have been able to sustain well.  Good luck on restructuring MAS.