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The Future Of Malaysia Airlines Is Up In The Air
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Story By: Larry Stine



  Originally Published on: 7/30/2014

Malaysia Airlines, struggling before the crashes of MH-17 and MH-370, and these two disasters ate deepening the crisis for the carrier. We take a look at what it will take for the airline to survive. The number that matters most for Malaysia Airlines is 537. Lives lost, in two tragedies, just four months apart. "They have died," says Abdul Aziz Abdbul Rahman. former CEO of Malaysia Airlines. "So it's very sad." The man who once led Malaysia's national carrier, Abdul Aziz, also worries about other numbers. Some $1.3-billion, money the airline lost, in just three years. Forcing those in charge to look at restructuring plans, and possible another government bailout. "You talk about those losses," says CNN's Will Ripley. "One-and-a-half million U.S. dollars per day." "Malaysia Airlines now is going through a very difficult period," says Abdul Aziz. "I don't think they've ever gone through this kind of situation in the past." A crisis coupled with fierce competition. Leaner, low-cost carriers are luring some passengers away. "The business model definitely needs to change," says Abdul Aziz/ He says Malaysia Air needs more low fares, less full service, higher seat count, lower food costs. And, he says, push for "open skies" agreements to make international flying easier. "I think they can survive," says Abdul Aziz. "They have the foundation." Nut marketing experts say the battering of the Malaysia Air brand could take years to undo. "The airline needs to focus on the process of rebuilding trust, rebuilding consumer confidence," says Christine Ennew. University of Nottingham's Christine Enew says the key is careful, strategic communication with customers. A strategy that helped other carriers survive crashes, bombings and terror attacks. "Certainly openness and honesty is important," Enew says. "Because if you're going to build trust and confidence, you need that openness." "So, transparency?" asks Ripley. She replies, "Transparency." But never before has an airline faced a double dose of devastation like flights 17 and 370. Two planes, hundreds of lives lost, and 20,000 Malaysia Airlines workers, who now face an uncertain future.

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