• Malaysia Steps In to Save Its Reeling National Airline
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[quote]Malaysia Airlines was struggling with growing losses, debt and a troubled business model well before the loss of two of its airplanes this year. Faced with competition from low-cost Asian carriers as well as pressure from the high-end airlines of the Persian Gulf, Malaysia Airlines had been losing money in the last three years. Tense labor relations and a bureaucratic management culture had stymied earlier efforts to reform the airline despite more than $1 billion in government investment in the last decade. On Friday, the Malaysian government, signaling that the embattled airline remained a strategic asset, announced that it would take full control of the company through a stock buyback and restructure its operations in an attempt to restore confidence in the flagging business.[/quote] [url]http://www.nytimes.com/2014/08/09/business/international/malaysia-airlines-to-be-taken-over-by-government.html?_r=0[/url]
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