Malaysia Airlines is Slowly Bleeding Out
First it was the disappearance of the Malaysia Airlines flight 370, and we don’t know for sure what happened to those 239 people on board. Then there was the shooting down of Malaysia Airlines flight en route to Kuala Lumpur from Amsterdam while it was crossing Ukrainian airspace. The second tragedy wasn’t the airlines fault, since apparently many airlines fly over conflict zones all the time and this hasn’t happened in the last few decades. The last time a tragic shoot down happened was in 1988 when the U.S. fired at Iran Air Flight 655, resulting in 290 casualties.
Now, Malaysia Airlines itself is slowly dying because of the two tragedies it has suffered so far this year. According to Mashable, the airline company is losing $2 million daily as most of its flights fly empty. We don’t know how the airline was doing prior to the Ukrainian shoot down, but for a moment let’s be generous and imagine that this began happening right after the July incident. That would mean that so far Malaysia Airlines has lost over $60 million from its reserves since last month. Of course, it would be obvious to assume that the airline had already been losing money since the disappearance of MH370.
According to News.com.au, the airline has increased the commission it offers to Australian travel agents from 6% to 11% if it books travelers on Malaysian flights. We wonder if this increase will have any affect on agents and travelers, and we’ll have to wait to find out.
By Roberto Garcia