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Malaysia Airlines attempts to survive after 2 tragedies

Reporter: Richard Bestic 丨 CCTV.com

08-05-2014 14:54 BJT

Full coverage: Malaysia Airlines Plane Bound for Beijing Goes Missing

Full coverage: Malaysian Airliner Crashes in Ukraine

Malaysia Airlines has become something of an also-ran in the highly competitive airline industry where cruel margins, volatile oil markets and fickle customers make dire business conditions. The two disasters in less than five months have led the airline to the brink of ruin.

In just four months the name of Malaysia Airlines has been blighted by tragedy unprecedented in aviation history. First MH370 disappeared off the map en route from Kuala Lumpa to Beijing with 239 passengers aboard. One of the great aviation mysteries of the modern age.

A disaster followed by the further tragedy of flight MH17 - shot down in the view of most Western governments as it flew over land held by rebel fighters in the East of the Ukraine. The human carnage has seen ticket sales and shares plummet

Market professionals insist Malaysian Airlines can only be saved by radical rebranding.

"The reality out there in the market place is not only should they, but they absolutely must. Indeed, if they don’t they’ll be dead as a business," Mindmetre Market Research Managing Director Paul Lindsell said.

Changes are already underway the call signs for MH 370 and MH17 both abandoned by the airline. But as the Malaysian government led review gets underway, there remain questions about the safety of the flight route taken by the ill fated flight MH17 directly over a conflict zone.

"What Malaysia should be doing is becoming the pioneers the flag wavers the champions of this big issue, which clearly is an emerging one and championing it themselves," Paul Lindsell said.

Despite the human tragedy, Malaysia Airline’s Commercial Director says the company will survive

"We’ll come out of this stronger and every time you have these kind of tragedies, we will adjust our processes and procedures to make sure we learn everything we can from them, help us to be stronger and avoid them in the future," Malaysia Airlines Commercial Director Hugh Dunleavy said.

Financially, Malaysia Airlines was in a difficult place even before the disasters of flight MH 17 and MH370. Restructuring and saving the company from a terminal decline will take years and crucially there no guarantees of success.

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