3. MH370
• MALAYSIA AIRLINES FLIGHT MH370, WITH 239 PASSENGERS ON
BOARD, WAS SCHEDULED TO FLY FROM THE MALAYSIAN CAPITAL,
KUALA LUMPUR, TO BEIJING IN CHINA ON SATURDAY MARCH 8,
2014.
• IT DISAPPEARED FROM CIVILIAN RADAR SCREENS ABOUT AN HOUR
INTO THE SCHEDULED SIX-HOUR FLIGHT.
• TWO OUTSTANDING THEORIES EXPLAINING THE DISAPPEARANCE
OF MH370
1. WAS THIS A TERRORIST ATTACK?
2. DID THE PILOT COMMIT SUICIDE?
4. Officials from Malaysia's Department of Civil Aviation meet with
members of the Chinese government after the disappearance of
Malaysia Airlines flight MH370 on March 12, 2014
5. THE LEADERSHIP AREAS IN FLIGHT MH370
A.NEGATIVE ASPECTS:
• FAILING TO MANAGE FLIGHT MH370 CRISIS
• PROVIDED AMBIGUOUS INFORMATION
• MALAYSIAN PRIME MINISTER MAHATHIR
MOHAMMAD BLAMED FOR BOEING.
6. THE LEADERSHIP AREAS IN FLIGHT MH370
B. POSITIVE ASPECTS:
- PROVIDED HOTEL ACCOMMODATION FOR RELATIVES’
PASSENGERS
- EQUALLY COMPENSATED FOR VICTIMS’ FAMILIES
- MALAYSIA'S DEFENCE MINISTER STATED THAT THE SEARCH FOR
MH370 WOULD CONTINUE DESPITE THE LOSS OF MH17 OVER
UKRAINE
-> “MORAL REASONING IS THE PROCESS LEADERS USE TO MAKE
DECISIONS ABOUT ETHICAL AND UNETHICAL BEHAVIORS; THE MANNER
BY WHICH THEY SOLVE MORAL PROBLEMS.”
8. CAUSES OF MH17 CRASH
• THE CAUSE OF THE CRASH HAS NOT YET BEEN
DETERMINED BY THE OFFICIAL INVESTIGATION, WHICH IS
BEING CARRIED OUT BY THE DUTCH SAFETY BOARD. BOTH
US AND UKRAINIAN OFFICIALS DECLARED THAT A
SURFACE-TO-AIR MISSILE STRIKE IS THE MOST LIKELY
CAUSE.
9.
10. An unnamed US intelligence official stated that Malaysia
Airlines Flight MH17 may have been shot down in error by
pro-Russian separatists, citing evidence that separatists
launched a SA-11 surface-to-air missile that blew up the
Malaysian airliner.
11. THE RESULT
•PRESIDENTS OBAMA AND PUTIN DISCUSSED THE
CRISIS:
THE US PRESIDENT TOLD HIS RUSSIAN
COUNTERPART THAT WHILE HE WAS "DEEPLY
CONCERNED" OVER HIS CONTINUING SUPPORT FOR
PRO-RUSSIAN SEPARATISTS IN UKRAINE, HE HOPED
A DIPLOMATIC SOLUTION WAS STILL POSSIBLE.
12. THE RESULT FOR THE COMPANY, AS A BUSINESS:
• THE RESULT FOR THE COMPANY, AS A BUSINESS:
• MALAYSIA AIRLINES STOCK HAS SEEN A DRAMATIC 13 PER CENT FALL IN THE
FIRST FEW MINUTES OF TRADING ON THE MALAYSIAN STOCK MARKET.
• AFTER THE MH370 DISASTER, PASSENGERS CANCELLED FLIGHTS, AND WHILE
THE AIRLINE IS INSURED, IT FACES UNCERTAINTY OVER PAYOUTS TO THE
VICTIMS’ FAMILIES.
• THE CRASHES CAUSED CONSIDERABLE "REPUTATIONAL DAMAGE" TO THE
AIRLINE, THE BBC NOTES, INCLUDING A 60 PER CENT DROP IN SALES FROM
CHINA.
• EVEN BEFORE THE TWO DISASTERS, THE MALAYSIAN FLAGSHIP CARRIER'S
FINANCIAL PERFORMANCE "WAS AMONG THE WORST IN THE INDUSTRY", THE
13. THE FUTURE DIRECTION:
• EXPECTED TO CUT JOBS, APPOINT A NEW MANAGEMENT TEAM AND SELL OFF THE
CARRIER'S PROFITABLE ASSETS, SUCH AS ITS AIRPORT SERVICES AND BUDGET AIRLINE
SUBSIDIARIES.
• MALAYSIA AIRLINES WILL BE DELISTED FROM THE STOCK MARKET AND PLACED UNDER
GOVERNMENT CONTROL AMID SUGGESTIONS, AND IT WILL BE RENAMED TO DETOXIFY THE
COMPANY AFTER THE MH17 AND MH370 DISASTERS.
• THE MAJORITY SHAREHOLDER, THE MALAYSIAN GOVERNMENT, HAS ALREADY STARTED A
PROCESS OF ASSESSING THE FUTURE SHAPE OF OUR BUSINESS AND THAT PROCESS WILL
NOW BE SPEEDED UP AS A RESULT OF MH17.
• CUT 6,000 JOBS IN WAKE OF MH370 AND MH17 DISASTERS. PLANNED JOB LOSSES ARE PART
OF MAJOR RESTRUCTURING OF AIRLINE FOLLOWING THE DISAPPEARANCE AND SHOOTING
DOWN OF AIRCRAFTS.
• THERE WILL ALSO BE A RESTRUCTURING OF ROUTES, ALTHOUGH THE TWICE-DAILY SERVICE
BETWEEN HEATHROW AIRPORT IN WEST LONDON AND KUALA LUMPUR, ON WHICH THE
WORLD'S LARGEST PASSENGER PLANE, THE AIRBUS A380 SUPERJUMBO OPERATES, IS SET TO
CONTINUE.