<p>Around 20,000 Malaysia Airlines staff members have received letters of dismissal in a bid to create a new profitable air carrier from 2018, media reports said on Monday.<br /><br /></p>.<p>Around 14,000 dismissed employees will receive an employment offer from Malaysia Airlines Berhad, the new company created to replace the airline from September 1, 2015.<br />The other 6,000 will get a fixed settlement for their services to the company.<br /><br />New chief executive of Malaysia Airlines Christoph Mueller said at a press conference on Monday that his priority was to "stop the bleeding" of the airline.<br /><br />"We are technically bankrupt and that decline of performance started long before the tragic events of 2014," Mueller said while referring to the two planes that the company lost last year.<br /><br />The first one was MH370, with 239 passengers on board that disappeared on March 8, 2014 on its journey from Kuala Lumpur to Beijing.<br /><br />According to joint investigations led by Malaysia, China and Australia, the plane changed course and crashed in a remote region, south of the Indian Ocean, once it ran out of fuel.<br /><br />The second was MH17 with 298 passengers on board. It was shot down on July 17, 2014 by a missile in eastern Ukraine where government forces were fighting pro-Russian rebels.<br /><br />Both disasters heightened the airline's economic crisis that it was already suffering for several years due to the rise in fuel prices and competition.<br /><br />The 14,000 workers who will be rehabilitated by Malaysia Airlines Berhad will have time until June 12 to accept or refuse the proposal.<br /><br />Malaysia Airlines does not expect all 14,000 employees to accept the offer taking into account the competition which will lead many to pursue other options.<br /><br />Mueller will spend most of 2016 in consolidating new company operations and expects growth to begin in fiscal year 2017-18.<br /><br />The plan is to reduce costly European routes and boost the regional links while keeping the new company's international hold intact. <br /></p>
<p>Around 20,000 Malaysia Airlines staff members have received letters of dismissal in a bid to create a new profitable air carrier from 2018, media reports said on Monday.<br /><br /></p>.<p>Around 14,000 dismissed employees will receive an employment offer from Malaysia Airlines Berhad, the new company created to replace the airline from September 1, 2015.<br />The other 6,000 will get a fixed settlement for their services to the company.<br /><br />New chief executive of Malaysia Airlines Christoph Mueller said at a press conference on Monday that his priority was to "stop the bleeding" of the airline.<br /><br />"We are technically bankrupt and that decline of performance started long before the tragic events of 2014," Mueller said while referring to the two planes that the company lost last year.<br /><br />The first one was MH370, with 239 passengers on board that disappeared on March 8, 2014 on its journey from Kuala Lumpur to Beijing.<br /><br />According to joint investigations led by Malaysia, China and Australia, the plane changed course and crashed in a remote region, south of the Indian Ocean, once it ran out of fuel.<br /><br />The second was MH17 with 298 passengers on board. It was shot down on July 17, 2014 by a missile in eastern Ukraine where government forces were fighting pro-Russian rebels.<br /><br />Both disasters heightened the airline's economic crisis that it was already suffering for several years due to the rise in fuel prices and competition.<br /><br />The 14,000 workers who will be rehabilitated by Malaysia Airlines Berhad will have time until June 12 to accept or refuse the proposal.<br /><br />Malaysia Airlines does not expect all 14,000 employees to accept the offer taking into account the competition which will lead many to pursue other options.<br /><br />Mueller will spend most of 2016 in consolidating new company operations and expects growth to begin in fiscal year 2017-18.<br /><br />The plan is to reduce costly European routes and boost the regional links while keeping the new company's international hold intact. <br /></p>