This just in
Following three straight years of losses — capped off by two high-profile disasters in less than five months — Malaysia Airlines will be de-listed and taken private, the Malaysian government announced Friday. The move had been expected, as ticket sales for Malaysia's national airline had plummeted following the tragedies of both Flight 370, which disappeared March 8, and Flight 17, which was shot down over Ukraine July 17.
Khazanah Nasional, a state investment fund, proposed a $436 million buy-out of the shares in the airline it does not own. This is expected to lead to a "complete overhaul" of the airline, including eliminating less popular routes, trimming payroll, and installing new management, Reuters reports.
In a statement, Khazanah Nasional said such a dramatic restructuring of the airline was the only way to save it. "Nothing less will be required in order to revive our national airline to be profitable as a commercial entity, and to serve its function as a critical national development agency," the statement read.
Malaysia Airlines employs nearly 20,000 people and has a 151-plane fleet.