Malaysia Airlines Bhd said travel bans and plummeting demand around the world due to the Covid-19 pandemic have put the loss-making national carrier at risk of bankruptcy.
According to financial daily The Edge, Malaysia Aviation Group (MAG) group chief financial officer Boo Hui Yee reportedly told Malaysian Airlines’ 13,000 staff that the national carrier was no different than many airlines globally now at risk.
“The situation has deteriorated rapidly over the weekend, forcing stricter travel restrictions by governments around the world, hence posing greater challenges in our operations.
“Demand has plummeted and passengers are jamming our global contact centre and social media accounts to cancel bookings, putting us in a critical situation. Many airlines are now at the risk of going bankrupt and Malaysia Airlines is no different,” she was quoted saying.
Last week, the airline urged employees to take voluntary unpaid leave following the disruption the Covid-19 has wrought on the aviation and tourism sectors.
MAS group chief executive Captain Izham Ismail also announced a 10 percent pay cut for its senior management as part of measures to lower operational costs and cope with the weaker demand for air travel due to the Covid-19 outbreak. – MMO