Malaysia Airlines announces bankruptcy, cuts job

Malaysia Airlines has announced massive plans for axing jobs and scrapping routes as its new German CEO rolls up sleeves to save the “technically bankrupt” flag carrier from further decline.

Christoph Mueller announced Monday he plans to cut around 6,000 jobs and overhaul the company's structure following recent air disasters that marred its reputation worldwide.

“We are technically bankrupt and that decline of performance started long before the tragic events of 2014,” Mueller told reporters, adding, “The restructuring process will start today with a hard reset.”

Hit hard by losses over the past five years, Malaysia Airlines suffered serious blows in 2014 when two of its flights ended in disaster. Flight MH370, which disappeared in March that year with 239 passengers on board, still remains missing. Flight MH17, flying over a restive region in east Ukraine four months later, was downed, causing 298 deaths.

Mueller, who took over as Malaysia Airlines CEO on May 1 to save it from collapse, said the company will also try to refurbish its brand in the market.

The 51-year-old chief executive, also known as “The Terminator” for his job-cutting records in two airlines in Europe, said the company has already sent termination letters to 20,000 of its employees, offering 14,000 of them new contracts.

That elicited a swift response from the carrier's flight attendants union which said the employees were paying the price for poor management.

“Today is the darkest moment for employees of Malaysia Airlines. I am having a tough time dealing with the emotions of those who have been terminated," said Ismail Nasaruddin, the union's head, adding “It is very distressing. I have crew members crying all over the phone, saying they had been terminated despite having a sterling performance record.”

Ismail said a decision is to be made regarding possible legal action against the planned cuts.

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