With a heavy financial hit expected in the second half of the year, the airline said Thursday that it lost
After the mysterious disappearance of Flight 370 in March with 239 passengers and crew members on board, the carrier's revenues decreased by 5 percent, to
In mid-July, in the immediate aftermath of Flight 17 being shot down by a missile over
A major overhaul is now planned that will include cuts in routes, flights and jobs.
Rebuilding the brand and overcoming intense competition by low-cost Asian carriers and competitors in the Persian Gulf "will be immensely difficult,"
Even before the "double tragedies" of Flights 370 and 17, the company's "weak financial performance" made
"We operate in a harsh environment of stiff competition from regional and global carriers and high operational costs," said the airline's chief executive officer, Ahmad Jauhari.
"Coupled with the impact of the two tragedies, which have damaged our brand, the need to restructure the company was accelerated," Jauhari said, noting that "the full financial impact" will hit in the second half of this year.
"Profitability will be very difficult to achieve -- even in the long-term -- given the flag carrier's current weak position and the intensive competition in the Southeast Asian market."
The airline has restructured several times over the last decade, but executives were "never able to tackle the underlying problems." Job cuts were difficult "because of union and political sensitivities," Sobie said.
The carrier has had potential suitors in recent years, including Qantas,
"Lack of stability" and "what was perceived as reckless growth in some markets put carriers off," Sobie said. "A more rational
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