Malaysia Airlines technically 'bankrupt', says new CEO

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Malaysia Airlines technically 'bankrupt', says new CEO

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The new boss of Malaysia Airlines has described the troubled airline as “technically bankrupt” after last year’s losses of Flights MH370 and MH17.

CEO Christoph Mueller told a news conference 6,000 jobs will be cut ahead of a rebrand later this year following the tragedies.

But Mueller – who has a strong reputation for turning airline brands around – said some of Malaysia’s problems are more long-standing.

“We are technically bankrupt […] the decline of performance started long before the tragic events of 2014,” Mueller told a news conference.

Consumer confidence was severely shaken when Flight MH370 disappeared with 239 people on board in March 2014.

Then just four months later, Flight MH17 was downed over Ukraine, killing 298 people.