Malaysia Airlines Flight 370: Difference between revisions - Wikipedia
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Line 381: At the time of Flight 370's disappearance, Malaysia Airlines was struggling to cut costs to compete with a wave of new, low-cost carriers in the region. In the previous three years, Malaysia Airlines had booked losses of: [[Malaysian ringgit|RM]]1.17 billion (US$356 million) in 2013, RM433 million in 2012, and RM2.5 billion in 2011.<ref name=WSJ-MASfinancial /> Malaysia Airlines lost RM443.4 million (US$137.4 million) in the first quarter of 2014 (January–March).<ref name="MAS Q1 financial report" /> The second quarter—the first full quarter in the aftermath of Flight 370's disappearance—saw a loss of RM307.04 million (US$97.6 million), representing a 75% increase over losses from the second quarter of 2013.<ref name="Q2 losses-NYT">{{cite news|title=Malaysia Airlines Financial Losses Grow|url=https://www.nytimes.com/2014/08/29/business/malaysia-airlines-financial-losses-grow.html|access-date=30 August 2014|work=[[The New York Times]]|agency=Reuters|date=29 August 2014}}</ref> Industry analysts expected Malaysia Airlines to lose further market share and face a challenging environment to stand out from competitors while addressing its financial plight.<ref name=WSJ-MASfinancial /> The company's stock, down as much as 20% following the disappearance of Flight 370, had fallen 80% over the previous five years, in contrast to a rise in the Malaysian stock market of about 80% over the same period.<ref name=NYT-MASfinances /> Many analysts and the media suggested that Malaysia Airlines would need to rebrand and repair its image and require government assistance to return to profitability.<ref name=WSJ-privatization>{{cite news|last1=Venkat|first1=P.R.|last2=Raghuvanshi|first2=Gaurav|title=Malaysia Airlines Could Go Private|url=https://online.wsj.com/articles/malaysia-airlines-could-go-private-1404301103|access-date=9 August 2014|website=The Wall Street Journal|date=2 July 2014}}</ref><ref>{{cite news|last1=Patterson|first1=Thom|title=Malaysia Air faces new, serious threat as company|url=http://www.cnn.com/2014/07/17/world/europe/malaysia-airlines-sidebar/index.html|access-date=9 August 2014|website=CNN.com|date=18 July 2014|quote=Analysts said it may take a government rescue to save the company from financial disaster.}}</ref><ref>{{cite web|title=Malaysia Airlines considers tie-up with Etihad Airways as restructuring process slowly begins|url=http://centreforaviation.com/analysis/malaysia-airlines-considers-tie-up-with-etihad-as-restructuring-process-slowly-begins-172934|website=centreforaviation.com|publisher=Centre for Aviation|access-date=9 August 2014|date=17 June 2014}}</ref><ref>{{cite news|last=Ngui|first=Yantoultra|title=Exclusive: State fund plans to take Malaysia Airlines private for restructuring: sources|url=https://www.reuters.com/article/us-malaysia-airlines-idUSKBN0F70UR20140702|access-date=9 August 2014|work=Reuters|location=Kuala Lumpur|date=2 July 2014 |archive-url=https://web.archive.org/web/20140705153815/https://www.reuters.com/article/2014/07/02/us-malaysia-airlines-idUSKBN0F70UR20140702 |archive-date=5 July 2014 |url-status=live}}</ref><ref>{{cite web|last=Zhang|first=Benjamin|title=How Malaysia Airlines Can Be Saved From Financial And Reputational Ruin|url=http://www.businessinsider.com/malaysia-airlines-uncertain-future-2014-7|website=Business Insider|access-date=23 July 2014}}</ref> The loss of Flight 17 in July greatly exacerbated Malaysia Airline's financial problems. The combined effect on consumer confidence of the loss of Flight 370 and Flight 17, and the airline's poor financial performance, led [[Khazanah Nasional]]—the majority shareholder (69.37%)<ref>{{cite news|last1=Hamzah|first1=Al-Zaquan Amer|last2=Leong|first2=Trinna|last3=Ngui|first3=Yantoultra|title=Malaysia Airlines To Go Private With A $435 Million Government Investment|url=https://www.businessinsider.com/malaysia-airlines-overhaul-2014-8|website=Business Insider|agency=Reuters|access-date=9 August 2014|date=8 August 2014|archive-date=28 February 2021|archive-url=https://web.archive.org/web/20210228232215/https://www.businessinsider.com/malaysia-airlines-overhaul-2014-8|url-status=dead}}</ref> and a Malaysian state-run investment arm—to announce on 8 August its plan to purchase the remainder of the airline, thereby renationalising it.<ref name="NYT-Khazanah takeover">{{cite news|last1=Mouawad|first1=Jad|title=Malaysia Steps in to Save Its Reeling National Airline|url=https://www.nytimes.com/2014/08/09/business/international/malaysia-airlines-to-be-taken-over-by-government.html|access-date=9 August 2014|work=[[The New York Times]]|date=8 August 2014}}</ref><ref name="The Australian">{{cite news|last1=Creedy|first1=Steve|title=Malaysia Airlines in $460m bid to clear air|url=http://www.theaustralian.com.au/business/aviation/malaysia-airlines-in-460m-bid-to-clear-air/story-e6frg95x-1227018472442?nk=70b32bc1815c4b34c2328e2c878caf76|access-date=9 August 2014|work=The Australian|date=9 August 2014}}</ref><ref name="Reuters Kazanah buyback">{{cite news|last1=Hamzah|first1=Al-Zaquan Amer|last2=Ngui|first2=Yantoultra|title=State fund to take over Malaysia Airlines, plans 'complete overhaul'|url=https://www.reuters.com/article/us-malaysia-airline-idUSKBN0G807E20140808|access-date=9 August 2014|publisher=Reuters|date=8 August 2014}}</ref> Malaysia Airlines [[Malaysia Airlines# ==== Compensation for passengers' next of kin ==== | |||