Following mid-air tragedies, Malaysia Airlines axes 30% of its staff

As its number of passengers dropped significantly, Malaysia Airlines made the decision to cut 30% of its workforce.

17:26 29 August 2014

Following mid-air tragedies including the disappearance of MH370 and the shooting down of MH17, Malaysia Airlines has been forced to cut 6,000 jobs, which represent nearly a third of its entire work force.

The tragedies, which took place in March and July 2014, have resulted in the sharp decline in the company’s numbers of passengers. The business  has confirmed that these compounded long-running losses prompted business restructuring strategies.

Its majority owner, the Khazanah Nasional state fund, confirmed that the company will be delisted from the stock market at the end of the year to undergo the painful changes, which will cost about £1.15bn.

There will also be route restructuring although the twice-daily service between London’s Heathrow and Kuala Lumpur will continue. A London-based Malaysia Airlines spokesman said: "The London-Kuala Lumpur route is highly successful and will carry on".

On Thursday, the company confirmed that its second-quarter net loss had widened in the wake of the mysterious disappearance of MH370 and the shooting down of MH17 over Ukraine.

Khazanah Managing Director Azman Mokhtar said: "Recent tragic events and ongoing difficulties at Malaysia have created a perfect storm that is allowing this restructuring to take place".