MH-370 Disappearance Slowed Traffic At Malaysia Airlines And Company Reviewing Expansion Plans
International Business Times
Published Jun 26, 2014 08:38AM ET
MH-370 Disappearance Slowed Traffic At Malaysia Airlines And Company Reviewing Expansion Plans
By Greg Morcroft - Still reeling from its Flight 370 disaster Malaysian Airlines on Wedneasdy said its reviewing its plans for future airplane purchases and it may modify its orders.
According to an article published by Bloomberg News, Malaysian Airlines' CEO Ahmad Jauhari Yahya said on Wednesday near Kuala Lumpur that, “The fleet plan is under review. The existing order is not impacted, only the future.”
According to the report the airline was mulling buying up to 100 new jets, various models from different makers, but that traffic has fallen dramatically since the disappearance of Flight 370, which went missing on March 8 over the Indian Ocean with 239 passengers and crew onboard. The plane has never been found.
Analysts are clearly concerned if the airline can survive the incident and heavy criticism surrounding the airlines actions during the search for the plane.
“The way things are going, you can’t think of expansion, you have to think about survival,” Mohshin Aziz, an analyst at Malayan Banking Bhd., told Bloomberg. “To get themselves out of the current situation, perhaps they should shrink in size rather than grow. Discontinue services to Europe and North Asia, just focus on the shorter-haul, medium-haul routes where they are doing fairly alright,” Aziz added.
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Written By: International Business Times
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