Malaysia Airlines is “technically bankrupt”, says the embattled airline’s new chief executive Christoph Mueller CEO as he outlines plans to stabilize the carrier with plans that include cutting up to 6,000 jobs.
The announcement follows the twin air disasters last year which forced the government to nationalize the airline.
According to the announcement Malaysia Air “offered jobs” to 14,000 of its 20,000 workforce.
“We are technically bankrupt,” Mr Mueller told a news conference. “The decline of performance started long before the tragic events of 2014.”
The airline is operating as normal and no flights have currently been affected.
In March last year, Malaysia Airlines flight MH370 disappeared with 239 passengers and crew aboard. The plane is still missing.
Four months later, flight MH17 was shot down by a suspected ground-to-air missile in Ukrainian airspace, with the loss of 298 passengers and crew.
The airline was already struggling at the time under the weight of strong regional competition and the two disasters proved to be the final straw.
Analysts have yet to react to the latest news.