Malaysia Airline woes not to wash away with rebranding
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E-mail Xinhua, August 4, 2014
The joint venture with Air Asia crumbled quickly, and talks with Australian carrier Qantas (already facing drastic cost cutting issues of its own) faded." Douglas said.
"Thai Airways International is too deeply embedded in the Thai political structure to look over its borders. Emirates already ruled out equity investments as it established its Qantas partnership, while Etihad has built its regional presence in Virgin Australia, alongside Singapore Airlines and Air New Zealand. "
Malaysia Airlines' cascading financial woes were just a part of the industry's required roller coaster ride, but when MH370 simply vanished before the worlds' eyes in March with 239 people -- a mystery still unsolved when the July 17 loss of flight MH17 over Ukraine (with all 298 passengers and crew lost) -- all bets were off.
Reports from industry analysts that Malaysia Airlines was bleeding 1 to 2.13 million Australian dollars (about 1-2 million U. S. dollars a day) have been rattling investors and government officials alike.
But for customers, the viability of Malaysian Airlines lies scattered across the fields of a Ukraine at war with itself.
In a brave but ultimately futile show of courage, Hugh Dunleavy, Malaysia Airlines' commercial director, wrote last week in British tabloids that the carrier both survive the tragedies and eventually "emerge stronger."
But Dunleavy has been a lone voice in an ocean as empty as the Southern seas that apparently swallowed MH370 with all hands.
A name change that changes nothing
Aggressive rebranding is touted widely as the best, perhaps only avenue.
Yet the searing images broadcast worldwide of the grieving families of those lost on MH370, seemingly treated like cattle by the Malaysian authorities, will scarcely be wiped away by a glossy name change.
Industry experts in Australia have insisted that such cosmetic changes must come after the structure of the business has been broken down and rebuilt from the ground up.
"Restructuring the fleet, network, and workforce of Malaysia Airlines is only the first step," according to Douglas.
"Freeing the airline to operate as a truly commercial entity may be much tougher. Without that freedom the future for Malaysia Airlines looks bleak, relying on periodic cash injections as its competitive position steadily fades against low cost regional competitors and the growing dominance of the long haul routes by the Gulf airlines."
Only then, will Malaysia Airlines earn the right and the dignity to bury its past and raise a new flag.
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