Malaysia Airlines to change name

LOSS-MAKING Malaysia Airlines is set to ditch its name and up to 6,000 staff in an attempt to restructure the business and move on from two fatal plane crashes, writes Laura Chesters.

The state-owned airline is desperately trying to cut costs and last week appointed an administrator to help the process. It will sell planes and is expected to axe a third of its workforce.

New chief executive Christoph Mueller said last week that while the administration process was under way its operations were running as ‘business as usual’. The new company and name will be revealed this week and it will be fully trading by September.

Mueller, an airline turnaround specialist, has been drafted in from Irish national carrier Aer Lingus to help Malaysia recover from the two fatal crashes last year.

The 52-year- old German, who restructured statebacked Aer Lingus and spearheaded a revamp at Lufthansa, has a reputation for micromanaging.

His arrival comes at a time when Malaysia must cut its costs because it is faced with f i erce competition f rom other full- service carriers and budget players. Analysts say the airline has been saddled with a cost base 20pc bigger than its peers.

It has also struggled with government interference, having been forced to fly to unprofitable destinations to promote Malaysia’s foreign policy agenda, it has been claimed. Unions have forced the airline to keep on more staff than needed and it is alleged that it has had to hand out contracts to politically connected firms.

In March 2014, Malaysia Airlines Flight MH370, carrying 239 passengers and crew, disappeared without trace in the Indian Ocean. Then last July, Flight MH17 was shot down over rebel-held territory in eastern Ukraine, killing all 298 on board.