6000 Malaysia Airlines dismissed workers – Management Journal

Monday, June 1, 2015

Malaysia Airlines is “technically bankrupt” said his new German president, who announced the elimination of 6,000 jobs

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Kuala Lumpur ( AFP ) .- Malaysia Airlines is “technically bankrupt” said Monday its new German president, and announced the elimination of 6,000 jobs in the company burdened by two tragic accidents last year.

“Technically, we are bankrupt and the deterioration of the results began long before the tragic events of 2014, “he said Christoph Mueller told reporters.

Malaysia Airlines sent Monday a letter of dismissal to its nearly 20,000 employees and 14,000 offered a new contract, which was deleted 6,000.

Mueller had already used this expedient method on the Irish Aer Lingus and Sabena Belgian, which earned him the nickname of “The Terminator” for his job cuts.

The Malaysian company expects Mueller, 52, the “reinvent” from September 1 with a new brand image that allows you to leave behind the stigma of disaster that lived in 2014.

Last March, the flight MH370 disappeared with 239 people on board and never trace his whereabouts was found. Four months later, the flight MH17 exploded in midair supposedly reached by a missile while flying over Ukraine. All 298 people aboard were killed.

These two tragedies were the last straw for this company, analysts said, was hampered by mismanagement that had for years, falling into the red.

A public investment fund rescued last year, imposing a change of course in management.

Mueller said he hopes to stop “bleeding” in 2015 and stabilize next, before starting to grow again in 2017.

Mueller said in an email sent to staff on Monday that requires a great change of course because the company can not afford costs 20% higher than their rivals.

In addition to downsizing, is expected to delete routes unprofitable long distance but Mueller said that these plans are not yet reported to not give clues to the competition.