Malaysian (MAS) has gone into receivership

[Saab34]

Breaking: MH files for Administration

Just in.

Plans to terminate entire workforce and "re hire" half of the 20,000 staff under new terms, commencing work from June 1.

Expect an International wipeout.

Only 1 person not fired, CEO Christopher Mueller.

Malaysia Airlines in administration, assures no disruption to flights

Malaysia Airlines has moved to reassure its customers it is operating as normal after a voluntary administrator was appointed today as part of a restructuring under its government owners.Newly installed chief executive Christopher Mueller said operations would continue as normal under the administration and existing reservations would not be affected.
“This appointment does not affect our daily operations or existing reservations,’’ he said. “You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honoured, and that our Enrich frequent flyer program continues with miles and status preserved.”
Mr Mueller’s statement came after Khazanah Nasional Berhad, the state-owned fund that last year took control of MAS, announced the appointment of administrator Mohammad Faiz Azmi to oversee the restructuring of the delisted airline.
The airline’s statement said the appointment reflected the restructuring taking place before the relaunch of the airline group in September under a new business model and a new management team led by Mr Mueller.
The appointment of the administrator comes under the Malaysian Airline System Berhad (MAB) (Administration) Act 2015 enacted by the Malaysiag Government.
The MAS Act allows the administrator to facilitate the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.
The airline was already in financial trouble when it was hit by the loss of two Boeing 777s last year
Cookies must be enabled. | The Australian

 

[TomVexille]

Re: Breaking: MH files for Administration

Unfortunately not surprising.

 

[coles525]

Re: Breaking: MH files for Administration

Oooooooo..........

 

[dajop]

Re: Breaking: MH files for Administration

This sounds like the intended outcome will be more like Chapter 11 in the US (quicker restructuring and removal of certain obligations to employees) than what happened to Ansett .... I guess wait and see.

 

[samh004]

Re: Breaking: MH files for Administration

I was talking to someone over the weekend who suggested the A380's they're trying to sell would be more likely to be taken back by Airbus than sold cheap, as it would undervalue Airbus sales. But if they plan to go radical, who knows.

 

[MarkD]

Re: Breaking: MH files for Administration

Not the CEO Fault that some mad wankers blew up their plane or another crashed. Someone had to guide it through restructure

 

[dairyfloss]

Re: Breaking: MH files for Administration

Hopefully what is said about booking with "full confidence" is true. .. I am currently a little stranded in KL after being denied a visa on entry to India just yesterday, and MH is my best bet at a quick 'get back' to Bangalore once my replacement visa is approved. It's that, or go via a domestic India connection (which i will not do) or Singapore. .. or <gulp > Sri Lanka.

 

[dajop]

Re: Breaking: MH files for Administration

Not the CEO Fault that some mad wankers blew up their plane or another crashed. Someone had to guide it through restructure

Problems at MH began well before MH370 disappeared. Corrupt, inefficient and a political tool are words often associated with MH, and have been for some years. Of course these are not the current CEO's fault either.

 

[mandja]

MAS has gone into receivership and will cease on 31 August to be replaced by a new airline MAB (Malaysian Air Berhard)
No word yet on what will happen to Enrich program nor points trapped there !

 

[JohnK]

Re: Breaking: MH files for Administration

Uh oh....

 

[lovetravellingoz]

No word yet on what will happen to Enrich program nor points trapped there !

Not quite correct. As of 5 hours ago
Cookies must be enabled. | The Australian

Newly installed chief executive Christopher Mueller said operations would continue as normal under the administration and existing reservations would not be affected.
“This appointment does not affect our daily operations or existing reservations,’’ he said. “You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honoured, and that our Enrich frequent flyer program continues with miles and status preserved.”

 

[basso]

It is in voluntary administration, not in receivership. This is a step in restructuring its assets. MAS have today said that operations, inclduing Enrich will continue as is....

 

[lovetravellingoz]

The airline’s statement said the appointment reflected the restructuring taking place before the relaunch of the airline group in September under a new business model and a new management team led by Mr Mueller.

That it is be relaunched I think is quite key, and different to a normal Administration where nothing is known.

 

[kamchatsky]

Re: Breaking: MH files for Administration

I was talking to someone over the weekend who suggested the A380's they're trying to sell would be more likely to be taken back by Airbus than sold cheap, as it would undervalue Airbus sales. But if they plan to go radical, who knows.

What is Airbus going to do with the 6 A380 though? It is not exactly cheap to buy it back ....

 

[Melburnian1]

Re: Breaking: MH files for Administration

The leading (though presumably Government censored or at least closely watched, since Malaysia is hardly a 'democracy' in the true sense of say Philippines, or maybe Indonesia) newspaper suggests that only 6000 staff will be fired:

MAS to focus on medium range routes | New Straits Times | Malaysia General Business Sports and Lifestyle News

The article implies that (most or all?) of the airline's Australia routes are safe from cuts, but that this is not true for European routes.

Am I correct in surmising that strikes are unlikely because the displaced staff won't have an employer soon? Or could there (however unlikely) be a snap walkout in two days' time that leads to an even more serious financial situation for this struggling airline?

 

[basso]

Indeed it is different. Many administrations don;t have their own set of laws, which the transition from MAS to MAB does have.....

 

[Foreigner]

It is in voluntary administration, not in receivership. This is a step in restructuring its assets. MAS have today said that operations, inclduing Enrich will continue as is....

They'll restructure staffing too, so anxious moments for employees. Expect morale to take a dip, in the short term.

 

[MEL_Traveller]

Re: Breaking: MH files for Administration

our thoughts to the general staff at this difficult time

I am puzzled by the 'book with confidence'... to where exactly?

should I book to Europe 'with confidence' given they will likely axe those routes? can I book regional business class 'with confidence' knowing my flat bed on a 772 or a380 will likely be replaced by a 737 or a330 with inferior product?

should I book one of the 10 weekly services to Tokyo 'with confidence' knowing it won't be downgraded to daily only?

can I book 'with confidence' knowing my flight will operate as planned, and if not, I will be re accommodated free of charge on another airline if my flight is cancelled at some stage in the future?

or do I book with another airline now for just $100 more that I know will be operating the schedule and aircraft advertised?

 

[smeacs]

Re: Breaking: MH files for Administration

Good questions MEL_Traveller

Remember this CEO was actually employed a couple of months ago to do just this.

 

[fall502]

Re: Breaking: MH files for Administration

I was going to book Bangkok Tokyo for travel first week of June with MH today.Glad I saw this thread and thanks for the posts.