On 8 March 2014, Malaysia Airlines Flight 370 or well-known as MH370 was a scheduled international passenger flight that disappeared while flying from Kuala Lumpur International Airport, Malaysia to Beijing Capital International Airport in China. The aircraft was carrying 12 Malaysian crew members and 227 passengers from 15 nations. The disappearance of this MH370 has brought many negative impacts to Malaysia economy. Ahmad Jauhari Yahya, Chief Executive of Malaysia Airlines, endorsed that after a month of disappearance, ticket sales had declined to provide specific details. However, the airline was passably insured to cover the financial loss stemming from Flight 370's disappearance. Majority of the passengers were from China, hence the bookings …show more content…
This follows a common practice among airlines to rename flights following disreputable accidents. Regrettably, the flight of Malaysia Airline's second daily flight to Beijing was later suspended beginning 2 May due to lack of demand. In March 2014 Malaysia Airlines was given US$110 million from insurers to cover initial payments to passengers' families and the search effort. In May, remarks from lead reinsurer of the flight, Allianz, indicated the insured market loss on MH370, including the search, was about US$350 …show more content…
These job losses are part of major restructuring of the airline, including the appointment of a new chief executive. The state announced plans to take full ownership of its 77-year-old flag carrier after trading in the airline's shares was suspended, when it was valued at less than 15 percent of its 2012 peak. Currently Malaysia's sovereign wealth fund, Khazanah Nasional, is the 69 percent majority owner, and plans to buy out other shareholders at a premium. Therefore, the rate of unemployment in Malaysia has increased after cutting
"In early 2000 Air Canada along with entire airline industry faced huge loss due to the high global economic downturn. With slow travel outstanding to the downturn and September 2011 incident the airline industry was hit extremely hard. Air Canada consequently posted net losses of $1.32 billion in 2001 and $828 million in 2002. Furthermore, with the spread for SARS disease Air Canada’s Asian route got effected
One of the disappearances involves Flight 19. “Five Avenger torpedo bombers lifted into the air from the Naval Air Station at Fort Lauderdale, Florida, at 2:10 in the afternoon” (“The Mystery”). The goal of the flight was to practice bomb runs and did not seem to be unusual. The pilots consisted of all students except for one commander whose name was Lt. Charles Taylor. However, the Charles Taylor was not familiar with the area around which they were flying. Taylor then became frustrated and confused which caused them to end up miles of course (“The Mystery”). Pilot experience when flying is important and could be the reason why a flight makes it to its destination or does not. Another disappearance involves the loss of NC16002. “NC16002 was a DC-3 passenger plane that vanished on the night of December 28, 1948, during a flight from San Juan, Puerto Rico, to Miami, Florida” (“The Mystery”). “Investigators focused on the fact that Huber wasn’t licensed to fly in the dark, using only instruments, and that the plane had taken off from the Bahamas before sunrise” (MacGregor 38). Pilot experience and training can be seen as the reason why these flights never made it to where they were supposed to go which is explanation as to why the planes
Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001.
The immediate financial repercussions of the terrorist attacks were astronomical. Makinen (2002) reports airlines received a $15 billion federal aid package. Additionally, insurance ...
After September 11th, 2001, the airline industry experienced a significant drop in travel. The reasons for the airline industry downfalls also included a weak U.S and global economy, a tremendous increase in fuel costs, fears of terrorist's attacks, and a decrease in both business and vacation travel.
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
In conclusion, many contribution factors led to the Crossair flight 3597 crash but is mainly triggered by Crossair’s incapability of assessment, pilot error and lastly the air traffic controller. Analysis of a flight crash is important so that we will know the causes, thus being able tackle it, making sure that there are no other flight crashes like Crossair flight 3597.
It was the afternoon of July 25, 2000. One hundred passengers, most of them German, boarded the Concorde Air France Flight 4590. This was a trip of a lifetime for many people, as Concorde was restricted to the wealthy class of people. The excitement in people was cut short by the unfortunate delay in flight, because of maintenance in one of its engines. The passengers boarded the plane a couple of hours after the scheduled time. Finally, it was cleared for taxi on runway 26-Right. The pilots lined the aircraft parallel to the runway. A tragic accident, however, was about to befall.
TM is a government-linked corporation, through its substantial shareholder Khazanah Malaysia (Khazanah), the Malaysian Government’s main investment vehicle. It is a major component of the Kuala Lumpur Stock Exchange Berhad Composite Index. In 2004, a new Group Chief Executive Officer, Dato Abdul Wahid bin Omar was appointed by Khazanah under a general revamp exercise of the GLCs.
Jaspal, S. (2012, March 14). Risk Management Failures in Kingfisher Airlines. In Risk Board. Retrieved March 26, 2014, from
The Malaysia Airline System (MAS) reported a loss of over RM1.3 billion for the Financial Year 2005. It was unacceptable to many parties such as the stakeholders and the government especially the announcement was made at the same time as some of MAS regional competitors reported strong profits in the same year.
Time will occur start with economic downturn, political unstable, lost of confident level of the investor for the reason of diseases that present that time. It is also possible that they are no more country we call Malaysia.
The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.