Malaysia Airlines Is Losing $2 Million A Day Flying Empty Planes
Malaysia Airlines suffered the two worst air disasters this year, and the impact is starting to show on the commercial carrier’s bottom line.
The airline has already been operating in the red for the last five years according to a Mashable report, and is now going through more than $2 million of its cash reserves daily flying near-empty flights in the wake of Flight 370’s disappearance en route to Beijing in March, and the shoot-down of Flight 17 over Ukraine in July. (RELATED: Malaysia Airlines Plane Reportedly Shot Down In Ukraine Near Russian Border)
“The southeast Asia air carrier burns its cash reserves at nearly $2.16 million each day,” Howard University professor Oliver McGee wrote in a LinkedIn post. “Operations are losing about $1.6 million a day.”
Malaysia Airlines has reportedly engaged in a host of special offers, price reductions and increased commissions to try and secure enough business to stay afloat, though all of their efforts appear to have made little impact.
Picture sent to me of a Malaysia Airlines flight out of Australia today to Asia | pic.twitter.com/3nrsdKIBmg
— Ricardo Goncalves (@BUSINESSricardo) August 15, 2014
— Ping (@WanPingCoombes) August 17, 2014
The importance of brand trust & values. Malaysia Airlines queue for check in empty 1.5hrs before the flight to KL pic.twitter.com/9MStJ66YeW
— Ruslan Kogan (@ruslankogan) March 10, 2014
Malaysia state investment company Khazanah Nasiona announced a nationalized buyout, overhaul and rebranding of the carrier earlier this year in order to salvage the country’s flagship airline. (RELATED: 9 theories surrounding the disappearance of Malaysian Airlines Flight 370)