Malaysia Airlines Is Burning $2 Million Every Day as Flights Go Empty - Social Anxiety Forum
 
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post #1 of 20 (permalink) Old 08-27-2014, 01:23 AM Thread Starter
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Malaysia Airlines Is Burning $2 Million Every Day as Flights Go Empty


http://mashable.com/2014/08/25/empty...lines-flights/

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Malaysia Airlines is facing dire economic straits after being involved in the two worst air tragedies of the year. Based on some recent photos taken by its few remaining passengers, some flights are operating nearly empty.

In March, Flight 370, scheduled to travel from from Kuala Lumpur to Beijing, disappeared with 12 crew and 227 passengers on board — which remains a mystery.

Then, last month, tragedy struck again when Flight 17 was shot down while in Ukrainian airspace. All 283 passengers and 15 crew aboard were killed.

Blame for the second tragedy cannot be placed squarely on Malaysia Airlines, as many major carriers routinely fly over conflict zones. But the loss of lives was inextricably linked to the airline by people around the world.

The carrier, which was operating in the red for about five years before either of this year's tragedies, has continued operating despite the major damage to its reputation.

"The southeast Asia air carrier burns its cash reserves at nearly $2.16 million each day," wrote Howard University professor Oliver McGee. "Operations are losing about $1.6 million a day."

According to Australia's news.com.au, the airline has doubled the commission it offers to Australian travel agents, from 6% to 11%, for booking travelers on the carrier. It is also offering deep discounts compared to other carriers: A sample fare search on Malaysia Airlines showed a round trip flight between Kuala Lumpur and Beijing for $238, while a similar flight on other carriers was listed for more than $500.

But these efforts have not been enough to prevent nearly empty

Earlier this month, Malaysia's state investment company Khazanah Nasional announced a complete overhaul of the tarnished carrier, announcing it would offer a buyout for the 31% of the airline stock it did not already own.

Details of the overhaul have not been explicit, but a name change, rebranding and labor restructuring are possible. But even if extreme measures are taken, it is difficult to imagine how the airline can overcome the shadow cast by the disastrous MH370 and MH17.







http://mashable.com/2014/08/25/empty...lines-flights/
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post #2 of 20 (permalink) Old 08-27-2014, 02:02 AM
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I really love having lots of room in the plane when I travel. More seats to choose from, the flight attendant's undivided attention (even though I generally wanna be left alone) and of course the silence.

But yeah, kerozene costs money, it pollutes and planes cause so much nuisance not only the noise but also with air traffic. Air traffic workers could do with the extra work of navigating trajectories for an empty airline.

Capitalism sucks. Okay it's fine to give your clients the satisfaction of flying in the peace and quiet but when you could save yourself brankruptcy and lots of grief for your collaborators (ground staffs, essentially) I would gladly pick a different airline.

People are ****ing selfish.
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post #3 of 20 (permalink) Old 08-27-2014, 02:19 AM
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You mean people are scared to fly ? lol

Pretty reasonable though .
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post #4 of 20 (permalink) Old 08-27-2014, 02:30 AM
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Sounds like I'm going to have a vacation flying with a cursed air carrier. Exciting!!!

Yeah, well, you know, that's just, like, your opinion, man.
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post #5 of 20 (permalink) Old 08-27-2014, 02:52 AM Thread Starter
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Sounds like I'm going to have a vacation flying with a cursed air carrier. Exciting!!!
If you're flying economy, it will probably feel like first class
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post #6 of 20 (permalink) Old 08-27-2014, 03:07 AM
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What a cute kid! Why is it alcoholing?
Because it might not have another opportunity!
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post #7 of 20 (permalink) Old 08-27-2014, 04:53 AM
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They are going to lay off their employees...sucks...

"I read somewhere...how important it is in life not necessarily to be strong...but to feel strong." - Chris McCandless
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post #8 of 20 (permalink) Old 08-27-2014, 04:56 AM
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Good, I hope they go bankrupt.
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post #9 of 20 (permalink) Old 08-27-2014, 07:19 AM
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Time to book a cheap flight to Malaysia!
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post #10 of 20 (permalink) Old 08-27-2014, 05:44 PM Thread Starter
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Time to book a cheap flight to Malaysia!
Wondering if other destinations are as good as well..
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post #11 of 20 (permalink) Old 08-27-2014, 06:07 PM
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Feel bad for Malaysian airlines tbh. Both of the accidents weren't there fault at all.
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post #12 of 20 (permalink) Old 08-27-2014, 07:04 PM
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Feel bad for Malaysian airlines tbh. Both of the accidents weren't there fault at all.
That airline had been one of the worst in the world long before any of this happened. The two unfortunate incidents have only exacerbated the problem.
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post #13 of 20 (permalink) Old 08-27-2014, 07:16 PM
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That airline had been one of the worst in the world long before any of this happened. The two unfortunate incidents have only exacerbated the problem.
I agree but I do feel sorry for Malaysian Airlines Staff, there the ones that are going to suffer because of the economic situation that is at hand. Malaysia airlines in apparently sacking over 4000 jobs in response to the lack of demand of its services with thousands more expected to go. Even those who keep their jobs , their future will be uncertain
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post #14 of 20 (permalink) Old 08-27-2014, 07:26 PM Thread Starter
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Originally Posted by Jammer25 View Post
That airline had been one of the worst in the world long before any of this happened. The two unfortunate incidents have only exacerbated the problem.
I'm not sure if I agree with this. On what factors have they been one of the worst in the last few years?
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post #15 of 20 (permalink) Old 08-27-2014, 07:31 PM
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Cheap flights, and no one on plane. This sounds actually amazing, time to go on holiday. If I can find a plane travelling from near the UK.... (Not really though, because no money.)

968.76 return leaving on 13th and returning on 29th of September flight to Tokyo meh... I'm not blown away. Can get 689 return from British Airways (same days) with one stop on way there in Paris apparently.

Why am I doing this?

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What a cute kid! Why is it alcoholing?
I'm stealing that verb

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post #16 of 20 (permalink) Old 08-27-2014, 07:33 PM
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Quote:
Originally Posted by Jammer25 View Post
That airline had been one of the worst in the world long before any of this happened. The two unfortunate incidents have only exacerbated the problem.
What is your basis for this statement?

Malaysia Airlines was awarded 10th top airline in 2012 and 14th top airline in 2013 at the World Airline Awards. Skytrax rated them a 5 star airline (although the rating is under review currently) and named them 5th Best Cabin Crew this year.

In terms of safety, their record is very good. Only two fatal incidents prior to this year; the last occurring in 1995. One of those incidents was a hijacking:

http://www.airsafe.com/events/airlines/malaysia.htm
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post #17 of 20 (permalink) Old 08-27-2014, 07:39 PM
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Originally Posted by markwalters2 View Post
I'm not sure if I agree with this. On what factors have they been one of the worst in the last few years?
I read somewhere that the airline only had 4 fatal crashes in its 65+ year history. The deadliest crash prior to this year's crashes was in 1977, when 100 people died. Their last fatal was in 1995 where 34 people died. It was considered to be one of the safest prior to this year.

I can't find the link though but you can try and google it. See Pompeii's post for link.
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post #18 of 20 (permalink) Old 08-27-2014, 07:47 PM
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Winning awards doesn't mean it's a good business overall. I was not speaking in terms of safety in my previous post.

Operationally, the airline has been terrible for much of the last decade plus. The fact that it's essentially run by the Malaysian government has presented a whole mess of issues. Constantly being unprofitable, poor management, lack of investment in updating several aspects of their business...the list goes on.
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post #19 of 20 (permalink) Old 08-27-2014, 07:55 PM Thread Starter
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Winning awards doesn't mean it's a good business overall. I was not speaking in terms of safety in my previous post.
Not totally true. Awards don't mean everything, but they still need to be very competent in order to win some of them.

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Originally Posted by Jammer25 View Post
Operationally, the airline has been terrible for much of the last decade plus. The fact that it's essentially run by the Malaysian government has presented a whole mess of issues. Constantly being unprofitable, poor management, lack of investment in updating several aspects of their business...the list goes on.
Profitability is definitely an issue for them. However, I doubt you can substantiate the rest of the factors.

On an interesting note, Qantas just announced a $2.8bn loss last year. This is even without the problems that are affecting Malaysian Airlines now. What can we make of it?
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post #20 of 20 (permalink) Old 08-27-2014, 08:34 PM
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Originally Posted by markwalters2 View Post
Profitability is definitely an issue for them. However, I doubt you can substantiate the rest of the factors.

On an interesting note, Qantas just announced a $2.8bn loss last year. This is even without the problems that are affecting Malaysian Airlines now. What can we make of it?
Malaysia Airlines was unprofitable precisely because of the issues I listed, that was the point. Lack of investments in fleet updates, poor revenue management and difficulties figuring out a good traffic mix are just a few examples. Being more effective in those areas, among others, would have seen them turn better, more consistent numbers over the last decade.

Tough to say regarding Qantas. Virgin is making major inroads, and Qantas' restructuring is an unknown. But I just don't see them expanding in Asia as much as they think they will.
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