oneworld Member Malaysia Airlines Entered Receivership Today

oneworld alliance member Malaysia Airlines was placed into receivership today. The idea is that they are going to move the ‘good’ assets to a new company, which will continue to operate the airline.

‘Malaysian Airline System Berhad’ (MAS) continues to operate the airline through August 31.

Then new company ‘Malaysia Airlines Berhad’ (MAB) will operate the company effective September 1.

This bankruptcy proceeding and transfer of assets does not – itself – affect operations of the airline. It’s a part of the airline’s restructuring, though, while is eliminating routes and jobs as the carrier tries to shrink to profitability. 6000 to 8000 jobs are expected to be lost, with Korean and Qatar Airways already recruiting Malaysia pilots and flight attendants.

Malaysia seeks to ensure its customers of the exact same things US airlines communicate when going through their own bankruptcies — e.g. that their miles are safe.

“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.”

Malaysia Airlines was struggling even before MH370 went missing last year and MH17 was shot down four months later. (Ironically, the loss of MH17 was financially crushing for Malaysia Airlines .. but a financial windfall for Russia.)

Nonetheless, I remain a big fan of the airline (I truly love their onboard satay) and am rooting for this underdog’s success!

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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  1. Good luck to the new MH.
    I recently flew MH from HKG to KUL in J class. Food was better than CX, but the drink menu is limited.

  2. If I remember correctly, the downing MH17 caused the economic sanctions on Russia to be tightened, so that should balance out the overflight fees hopefully.

  3. The claim that “daily operations” are not impacted is an empty promise. I have a business class reservation to Europe, MH cancelled the return flight from Frankfurt and hasn’t made any effort to make a comparable reservation. I have been trying to get a resolution for 4 weeks, no luck. I can’t even get a response to emails. This level of customer service is unacceptable and I would not recommend to make any MH reservation – you can’t be sure that your reservation is honored or you will be taken care off in case of changes required by the bankruptcy…

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