Malaysia Airlines Flight 370: Economic Impact

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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

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