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Government To Buy Out Malaysia Airlines

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Key Takeaways:

  • Malaysia Airlines faces economic collapse due to the twin tragedies of Flight MH370's disappearance and Flight MH17's shootdown.
  • The Malaysian government, already a 70% owner, will take full control of the airline by buying out remaining private shares.
  • The airline has struggled with profitability for over a decade, requiring more than $1.5 billion in government investment even before the recent crises.
  • A comprehensive restructuring plan is underway, potentially involving layoffs for the airline's 20,000 employees and the firing of senior management.
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Beleaguered Malaysia Airlines will seek to avoid economic collapse with a government takeover of the carrier, brought on by the twin tragedies this year of the disappearance of Flight MH370 and the shoot down of MH17 over Ukraine.

Even before it faced unthinkable crises involving two of its Boeing 777s the airline struggled to turn a profit. The Malaysian government already owns 70 percent of the company and will buy out the remaining shares from private investors. It has poured more than $1.5 billion into the carrier in the last decade.

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