Scott is no stranger to success in the Middle East, with the 2013 Masters champion counting two wins in Qatar in his illustrious career
sports1 hour ago
All 298 people aboard MH17 from Amsterdam to Kuala Lumpur died on Thursday when it came down in violence-wracked eastern Ukraine, with the United States saying it was hit by a surface-to-air missile.
Some industry experts say the incident was beyond the airline’s control and while its reputation will be further tarnished, the effect could be limited if it avoids the mistakes made in the MH370 case.
But others warn that even if Thursday’s tragedy is proved to have been caused by outside forces it faces an uphill fight to regain passenger confidence.
The flag carrier was already in financial trouble when MH370 disappeared in March en route from Kuala Lumpur to Beijing with 239 people on board. The plane has yet to be found despite an extensive international search.
“MH370 sent shivers down people’s spines, but most people realised it was an out-of-the-ordinary occurrence, so bookings recovered,” Gerry Soejatman, a consultant with the Jakarta-based Whitesky Aviation chartered flight provider, told AFP. “MH17 is like lightning striking twice. The effects on bookings will be bigger.”
Crucially, two-thirds of passengers on MH370 were from China, its key market, and the firm said sales in the country dived 60 per cent after the disappearance.
News of a second tragedy could prove to be a hammer blow to its chances in China, a country where a brand’s link to anything to do with death can be extremely damaging.
Malaysia Airlines shares plunged more than 11 per cent in late-afternoon Friday trade on the Kuala Lumpur stock exchange and it has now lost more than a third of its value since the end of 2013.
The carrier, which has lost 4.57 billion ringgit ($1.4 billion) since the start of 2011, had been speeding up an overhaul of its business after the disappearance of Flight 370 spurred the longest search for a missing plane in modern aviation history. “This is shocking,” Geoffrey Ng, an adviser for strategic investments at Fortress Capital Asset Management, said in Kuala Lumpur. “Investors will want to sell first and get more information later. This will raise concerns about the safety culture of airlines in general.”
The Subang Jaya, Malaysia-based carrier last reported an annual profit in 2010. Malaysian Air missed its target to be profitable last year as rising prices for fuel, maintenance and financing wiped out revenue gains. Analysts project losses through 2016 for the airline, according to data compiled by Bloomberg.
“I can’t comprehend of anything they can do to save themselves,” said Mohshin Aziz, an aviation analyst at Maybank in Kuala Lumpur, Malaysia.
“Perception-wise it really hits home... it’s very difficult to fight against negative perception.”
Already losing about $1.6 million a day, there will be “no miracles” for Malaysia Airlines, said Aziz. Before the Ukrainian disaster, his opinion was the airline didn’t have the capacity to survive beyond a year.
Scott is no stranger to success in the Middle East, with the 2013 Masters champion counting two wins in Qatar in his illustrious career
sports1 hour ago
From what he’s witnessed, the children of some business owners are involved only after completing their education and are often given managerial positions right away
business1 hour ago
Arakji will immediately join the Dubai Basketball squad for their next fixture against Mornar on Sunday
sports2 hours ago
Former Nasa official sheds light on leveraging space as a ‘laboratory’ for regenerative medicine at Abu Dhabi Space Debate
uae2 hours ago
For more than 100 years and through many wars, Bakdash has served up an Arabic-style of ice cream that is infused with Sahlab, a flour made from orchid roots
mena2 hours ago
China's trade surplus grew to $97.44 billion in November
economy2 hours ago
The walkways will incorporate misting systems, interactive digital screens, and art displays
uae2 hours ago
Italy has been one of the country's hardest hit by the pandemic, recording over 190,000 deaths, according to World Health Organisation figures
europe2 hours ago