Malaysia Airlines Flight 370 Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.Anti-spam check. Do not fill this in! === Malaysia Airlines === {{see also|Malaysia Airlines#2011–2014: Third unprofitability, 2014 aircraft losses, bankruptcy|l1=Malaysia Airlines § 2014 aircraft losses}} A month after the disappearance, Malaysia Airlines' chief executive Ahmad Jauhari Yahya acknowledged that ticket sales had declined but failed to provide specific details. This may have partially resulted from the suspension of the airline's advertising campaigns following the disappearance. Ahmad stated in an interview with ''[[The Wall Street Journal]]'' that the airline's "primary focus...is that we do take care of the families in terms of their emotional needs and also their financial needs. It is important that we provide answers for them. It is important that the world has answers, as well."<ref name=WSJ-MASfinancial>{{cite web|last1=Raghuvanshi|first1=Gaurav|last2=Ng|first2=Jason|title=Malaysia Airlines Says Priority Is Families of the Missing, Though Ticket Sales Fall|url=https://online.wsj.com/news/articles/SB10001424052702303532704579483060366249526|website=The Wall Street Journal|access-date=3 July 2014|date=6 April 2014|archive-date=23 June 2014|archive-url=https://web.archive.org/web/20140623100955/http://online.wsj.com/news/articles/SB10001424052702303532704579483060366249526?|url-status=live}}</ref> In further remarks, Ahmad said he was not sure when the airline could start repairing its image, but that the airline was adequately insured to cover the financial loss stemming from Flight 370's disappearance.<ref name=WSJ-MASfinancial /><ref name="MAS Q1 financial report">{{cite web|title=Malaysia Airlines Records RM443 million Loss for Q1 2014|url=http://www.malaysiaairlines.com/my/en/corporate-info/press-room/latest/malaysia-airlines-records-rm443-million-loss-for-q12014.html|website=Malaysia Airlines|access-date=3 July 2014|date=15 May 2014|quote=Much of the costs associated by MH370 will be covered by insurance.|archive-date=14 July 2014|archive-url=https://web.archive.org/web/20140714115404/http://www.malaysiaairlines.com/my/en/corporate-info/press-room/latest/malaysia-airlines-records-rm443-million-loss-for-q12014.html|url-status=live}}</ref> In China, where the majority of passengers were from, bookings on Malaysia Airlines were down 60% in March.<ref name=NYT-MASfinances>{{cite news|title=Flight's Disappearance Knocks Malaysia Airlines|url=https://www.nytimes.com/2014/05/16/business/international/flights-disappearance-knocks-malaysia-airlines.html|website=The New York Times|access-date=3 July 2014|date=15 May 2014|archive-date=25 June 2014|archive-url=https://web.archive.org/web/20140625161719/http://www.nytimes.com/2014/05/16/business/international/flights-disappearance-knocks-malaysia-airlines.html|url-status=live}}</ref> Malaysia Airlines [[Aviation accidents and incidents#Retirement of flight numbers|retired]] the MH370 [[flight number]] and replaced it with MH318 (Flight 318) beginning 14 March 2014. This follows a common practice among airlines to redesignate flights after notorious accidents.<ref>{{cite news|title=Malaysia Airlines to Retire Call Sign 370|url=https://blogs.wsj.com/searealtime/2014/03/13/airline-to-retire-call-sign-370/|access-date=30 August 2014|work=The Wall Street Journal|date=13 March 2014|archive-date=3 September 2014|archive-url=https://web.archive.org/web/20140903083950/http://blogs.wsj.com/searealtime/2014/03/13/airline-to-retire-call-sign-370/|url-status=live}}</ref><ref>{{cite news|last1=Neuman|first1=Scott|title=When Bad Things Happen To Planes, Flight Codes Get 'Retired'|url=https://www.npr.org/blogs/thetwo-way/2014/03/13/289800435/when-bad-things-happen-to-planes-flight-codes-get-retired|work=[[NPR]]|access-date=30 August 2014|date=13 March 2014|archive-date=27 September 2014|archive-url=https://web.archive.org/web/20140927093643/http://www.npr.org/blogs/thetwo-way/2014/03/13/289800435/when-bad-things-happen-to-planes-flight-codes-get-retired|url-status=live}}</ref> As of October 2023, Malaysia Airlines still operates the Kuala Lumpur - Beijing route as MH318, however the airline now flies into [[Beijing Daxing International Airport|Beijing Daxing]] rather than Beijing Capital.<ref>{{Cite web |title=MH318 (MAS318) Malaysia Airlines Flight Tracking and History |url=http://www.flightaware.com/live/flight/MAS318 |access-date=2023-10-29 |website=FlightAware |language=en |archive-date=29 October 2023 |archive-url=https://web.archive.org/web/20231029083607/https://www.flightaware.com/live/flight/MAS318 |url-status=live }}</ref> Malaysia Airlines was given US$110 million (~${{Format price|{{Inflation|index=US-GDP|value=110000000|start_year=2014}}}} in {{Inflation/year|US-GDP}}) from insurers in March 2014 to cover initial payments to passengers' families and the search effort.<ref>{{cite web|last1=Wilson|first1=Harry|title=Flight MH370: insurers make first pay out on missing Malaysia Airlines plane|url=https://www.telegraph.co.uk/news/worldnews/asia/malaysia/10717604/Flight-MH370-insurers-make-first-pay-out-on-missing-Malaysia-Airlines-plane.html |archive-url=https://ghostarchive.org/archive/20220110/https://www.telegraph.co.uk/news/worldnews/asia/malaysia/10717604/Flight-MH370-insurers-make-first-pay-out-on-missing-Malaysia-Airlines-plane.html |archive-date=10 January 2022 |url-access=subscription |url-status=live|website=The Telegraph|access-date=17 July 2014|date=23 March 2014|quote=Malaysia Airlines has already been handed $110 million (£67 million) by insurers over the loss of its missing Boeing 777 on flight MH370}}{{cbignore}}</ref> In May, remarks from lead reinsurer of the flight, [[Allianz]], indicated the insured market loss on Flight 370, including the search, was about US$350 million.<ref>{{cite web|last1=Boyle|first1=Charles|title=Complex Situation Occludes Details on Loss of Malaysian Airlines Flight MH370|url=http://www.insurancejournal.com/news/international/2014/03/27/324543.htm|website=Insurance Journal|access-date=17 July 2014|date=27 March 2014|quote=Allianz Global Corporate & Specialty has been identified as both the lead insurer and the lead reinsurer. An Allianz spokesperson in London confirmed that it is officially the latter.|archive-date=8 August 2014|archive-url=https://web.archive.org/web/20140808074209/http://www.insurancejournal.com/news/international/2014/03/27/324543.htm|url-status=live}}</ref><ref>{{cite web|last1=Mathew|first1=Jerin|title=Missing Malaysian Airlines Flight MH370 Hits Allianz with $30m Bill|url=http://www.ibtimes.co.uk/missing-malaysian-airlines-flight-mh370-hits-allianz-30m-bill-1448613|website=International Business Times|access-date=17 July 2014|date=15 May 2014|quote=The insured market loss on the aeroplane is about $350m, which include the costs for searching.|archive-date=27 July 2014|archive-url=https://web.archive.org/web/20140727023459/http://www.ibtimes.co.uk/missing-malaysian-airlines-flight-mh370-hits-allianz-30m-bill-1448613|url-status=live}}</ref> In 2017, Malaysia Airlines announced that they are the first airline to sign up for a new service that would track its airplanes anywhere in the world using orbiting satellites.<ref>{{cite web|last1=Vincent|first1=James|title=Malaysia Airlines will be first to use new satellite-based airplane tracking system|url=https://www.theverge.com/2017/4/19/15354328/malaysia-airlines-satellite-based-tracking|website=The Verge|access-date=27 August 2023|date=19 April 2017|archive-date=27 August 2023|archive-url=https://web.archive.org/web/20230827143012/https://www.theverge.com/2017/4/19/15354328/malaysia-airlines-satellite-based-tracking|url-status=live}}</ref> ==== Financial troubles ==== At the time of Flight 370's disappearance, Malaysia Airlines was struggling to cut costs to compete with a wave of new, low-cost carriers in the region. In the previous three years, Malaysia Airlines had booked losses of: [[Malaysian ringgit|RM]]1.17 billion (US$356 million) in 2013, RM433 million in 2012, and RM2.5 billion in 2011.<ref name=WSJ-MASfinancial /> Malaysia Airlines lost RM443.4 million (US$137.4 million) in the first quarter of 2014 (January–March).<ref name="MAS Q1 financial report" /> The second quarter—the first full quarter in the aftermath of Flight 370's disappearance—saw a loss of RM307.04 million (US$97.6 million), representing a 75% increase over losses from the second quarter of 2013.<ref name="Q2 losses-NYT">{{cite news|title=Malaysia Airlines Financial Losses Grow|url=https://www.nytimes.com/2014/08/29/business/malaysia-airlines-financial-losses-grow.html|access-date=30 August 2014|work=[[The New York Times]]|agency=Reuters|date=29 August 2014|archive-date=29 August 2014|archive-url=https://web.archive.org/web/20140829075841/http://www.nytimes.com/2014/08/29/business/malaysia-airlines-financial-losses-grow.html|url-status=live}}</ref> Industry analysts expected Malaysia Airlines to lose further market share and face a challenging environment to stand out from competitors while addressing its financial plight.<ref name=WSJ-MASfinancial /> The company's stock, down as much as 20% following the disappearance of Flight 370, had fallen 80% over the previous five years, in contrast to a rise in the Malaysian stock market of about 80% over the same period.<ref name=NYT-MASfinances /> Many analysts and the media suggested that Malaysia Airlines would need to rebrand and repair its image and require government assistance to return to profitability.<ref name=WSJ-privatization>{{cite news|last1=Venkat|first1=P.R.|last2=Raghuvanshi|first2=Gaurav|title=Malaysia Airlines Could Go Private|url=https://online.wsj.com/articles/malaysia-airlines-could-go-private-1404301103|access-date=9 August 2014|website=The Wall Street Journal|date=2 July 2014|archive-date=27 July 2014|archive-url=https://web.archive.org/web/20140727213048/http://online.wsj.com/articles/malaysia-airlines-could-go-private-1404301103|url-status=live}}</ref><ref>{{cite news|last1=Patterson|first1=Thom|title=Malaysia Air faces new, serious threat as company|url=http://www.cnn.com/2014/07/17/world/europe/malaysia-airlines-sidebar/index.html|access-date=9 August 2014|website=CNN.com|date=18 July 2014|quote=Analysts said it may take a government rescue to save the company from financial disaster.|archive-date=11 April 2019|archive-url=https://web.archive.org/web/20190411205515/https://edition.cnn.com/2014/07/17/world/europe/malaysia-airlines-sidebar/index.html|url-status=live}}</ref><ref>{{cite web|title=Malaysia Airlines considers tie-up with Etihad Airways as restructuring process slowly begins|url=http://centreforaviation.com/analysis/malaysia-airlines-considers-tie-up-with-etihad-as-restructuring-process-slowly-begins-172934|website=centreforaviation.com|publisher=Centre for Aviation|access-date=9 August 2014|date=17 June 2014|archive-date=10 August 2014|archive-url=https://web.archive.org/web/20140810112319/http://centreforaviation.com/analysis/malaysia-airlines-considers-tie-up-with-etihad-as-restructuring-process-slowly-begins-172934|url-status=live}}</ref><ref>{{cite news|last=Ngui|first=Yantoultra|title=Exclusive: State fund plans to take Malaysia Airlines private for restructuring: sources|url=https://www.reuters.com/article/us-malaysia-airlines-idUSKBN0F70UR20140702|access-date=9 August 2014|work=Reuters|location=Kuala Lumpur|date=2 July 2014 |archive-url=https://web.archive.org/web/20140705153815/https://www.reuters.com/article/2014/07/02/us-malaysia-airlines-idUSKBN0F70UR20140702 |archive-date=5 July 2014 |url-status=live}}</ref><ref>{{cite web|last=Zhang|first=Benjamin|title=How Malaysia Airlines Can Be Saved From Financial And Reputational Ruin|url=http://www.businessinsider.com/malaysia-airlines-uncertain-future-2014-7|website=Business Insider|access-date=23 July 2014|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304003951/http://www.businessinsider.com/malaysia-airlines-uncertain-future-2014-7|url-status=live}}</ref> The loss of Flight 17 in July greatly exacerbated Malaysia Airline's financial problems. The combined effect on consumer confidence of the loss of Flight 370 and Flight 17, and the airline's poor financial performance, led [[Khazanah Nasional]]—the majority shareholder (69.37%)<ref>{{cite news|last1=Hamzah|first1=Al-Zaquan Amer|last2=Leong|first2=Trinna|last3=Ngui|first3=Yantoultra|title=Malaysia Airlines To Go Private With A $435 Million Government Investment|url=https://www.businessinsider.com/malaysia-airlines-overhaul-2014-8|website=Business Insider|agency=Reuters|access-date=9 August 2014|date=8 August 2014|archive-date=28 February 2021|archive-url=https://web.archive.org/web/20210228232215/https://www.businessinsider.com/malaysia-airlines-overhaul-2014-8|url-status=dead}}</ref> and a Malaysian state-run investment arm—to announce on 8 August its plan to purchase the remainder of the airline, thereby renationalising it.<ref name="NYT-Khazanah takeover">{{cite news|last1=Mouawad|first1=Jad|title=Malaysia Steps in to Save Its Reeling National Airline|url=https://www.nytimes.com/2014/08/09/business/international/malaysia-airlines-to-be-taken-over-by-government.html|access-date=9 August 2014|work=[[The New York Times]]|date=8 August 2014|archive-date=9 July 2017|archive-url=https://web.archive.org/web/20170709105419/https://www.nytimes.com/2014/08/09/business/international/malaysia-airlines-to-be-taken-over-by-government.html|url-status=live}}</ref><ref name="The Australian">{{cite news|last1=Creedy|first1=Steve|title=Malaysia Airlines in $460m bid to clear air|url=http://www.theaustralian.com.au/business/aviation/malaysia-airlines-in-460m-bid-to-clear-air/story-e6frg95x-1227018472442?nk=70b32bc1815c4b34c2328e2c878caf76|access-date=9 August 2014|work=The Australian|date=9 August 2014}}</ref><ref name="Reuters Kazanah buyback">{{cite news|last1=Hamzah|first1=Al-Zaquan Amer|last2=Ngui|first2=Yantoultra|title=State fund to take over Malaysia Airlines, plans 'complete overhaul'|url=https://www.reuters.com/article/us-malaysia-airline-idUSKBN0G807E20140808|access-date=9 August 2014|publisher=Reuters|date=8 August 2014|archive-date=3 January 2016|archive-url=https://web.archive.org/web/20160103015120/http://www.reuters.com/article/us-malaysia-airline-idUSKBN0G807E20140808|url-status=live}}</ref> Malaysia Airlines [[Malaysia Airlines#2015–2020: Renationalisation, restructuring, and rebranding|renationalised]] on 1 September 2015. ==== Compensation for passengers' next of kin ==== Lack of evidence in determining the cause of Flight 370's disappearance, as well as the absence of any physical confirmation that the airplane crashed, raises many issues regarding responsibility for the accident and the payments made by insurance agencies.<ref name=SMH-insurance>{{cite web|title=Missing Malaysia Airlines flight MH370 puzzle raises legal problems|url=https://www.smh.com.au/world/missing-malaysia-airlines-flight-mh370-puzzle-raises-legal-problems-20140511-zr9fz.html|website=The Sydney Morning Herald|access-date=17 July 2014|date=11 May 2014|archive-date=2 July 2014|archive-url=https://web.archive.org/web/20140702080627/http://www.smh.com.au/world/missing-malaysia-airlines-flight-mh370-puzzle-raises-legal-problems-20140511-zr9fz.html|url-status=live}}</ref> Under the [[Montreal Convention]], it is the carrier's responsibility to prove lack of fault in an accident and each passenger's [[next of kin]] are automatically entitled, regardless of fault, to a payment of approximately US$175,000{{efn|The exact amount of this compensation is 113,100 [[special drawing rights]]. Using the official exchange rates on 16 July 2014, this is worth approximately: [[Malaysian ringgit|RM]]557,000; [[Renminbi|¥]]1,073,000; US$174,000; €129,000; or £102,000.}} from the airline's insurance company—amounting to a total of almost US$40 million for the 227 passengers on board.<ref name=SMH-insurance /> Malaysia Airlines was also vulnerable to civil action from passengers' families.<ref name=SMH-insurance /> Compensation awarded during civil cases (or settlements reached out of court) was likely to vary widely among passengers, based on the country where the proceedings were to take place. An American court could be expected to award upwards of US$8–10 million, while Chinese courts would be likely to award a small fraction of that amount.<ref name=CNBC-insurance>{{cite news|last1=Bishop|first1=Katrina|title=MH370 families face huge compensation disparity|url=https://www.cnbc.com/id/101522502|work=CNBC|access-date=17 July 2014|date=25 March 2014|archive-date=16 July 2014|archive-url=https://web.archive.org/web/20140716233436/http://www.cnbc.com/id/101522502|url-status=live}}</ref><ref name=CNNMoney-insurance>{{cite web|last1=Wallace|first1=Gregory|title=Malaysia Airlines Flight 370: How much will families be paid?|url=https://money.cnn.com/2014/03/25/news/companies/malaysia-airlines-compensation/|website=CNN Money|access-date=17 July 2014|date=26 March 2014|archive-date=20 June 2014|archive-url=https://web.archive.org/web/20140620165258/http://money.cnn.com/2014/03/25/news/companies/malaysia-airlines-compensation|url-status=live}}</ref> Despite the announcement that the flight ended in the southern Indian Ocean, it was not until 29 January 2015 that the Malaysian government officially declared Flight 370 an accident with no survivors, a move that would allow compensation claims to be made.<ref name="BBC declared an accident">{{cite news|url=https://www.bbc.co.uk/news/world-asia-31039460 |title=MH370: Malaysia declares flight disappearance an accident |website=BBC News |date=29 January 2015 |archive-url=https://web.archive.org/web/20150219115319/https://www.bbc.com/news/world-asia-31039460 |archive-date=19 February 2015 |url-status=live}}</ref> The first civil case relating to the disappearance was filed in October 2014—even before Flight 370 had been declared an accident—on behalf of two Malaysian boys whose father was a passenger;{{efn|In March 2014, a petition for [[Discovery (law)|discovery]] was filed in a US court by a law firm, not representing relatives of families, against Boeing and Malaysia Airlines. It sought to obtain the names of manufacturers of aircraft parts along with maintenance records. It was reported in the media as a lawsuit or that Malaysia Airlines was being sued.<ref name="SCMP March 2014 lawsuit">{{cite news|title=American law firm plans to bring suit against Boeing and Malaysia Airlines|url=http://www.scmp.com/news/asia/article/1457610/american-law-firm-plans-bring-suit-against-boeing-and-malaysia-airlines|access-date=31 January 2015|work=South China Morning Post|agency=Reuters|archive-date=30 October 2014|archive-url=https://web.archive.org/web/20141030025928/http://www.scmp.com/news/asia/article/1457610/american-law-firm-plans-bring-suit-against-boeing-and-malaysia-airlines|url-status=live}}</ref><ref name="Time-March 2014 lawsuit">{{cite news|last1=Liljas|first1=Per|title=Family Member Files Lawsuit Over Missing Jet as Frustrating Search Continues|url=http://time.com/38260/malaysia-airlines-sued-over-mh370-disappearance/|access-date=31 January 2015|magazine=Time|date=26 March 2014|archive-date=30 January 2015|archive-url=https://web.archive.org/web/20150130030507/http://time.com/38260/malaysia-airlines-sued-over-mh370-disappearance/|url-status=live}}</ref>}} they were claiming for negligence in failing to contact the aircraft soon after it was lost and for breach of contract for failing to bring the passenger to his destination.<ref name="WaPo first lawsuit by passenger families">{{cite news|last=Phillip|first=Abby|title=Two Malaysian boys sue airline, government in first case after MH370's mysterious disappearance|url=https://www.washingtonpost.com/news/morning-mix/wp/2014/10/31/two-malaysian-boys-sue-airline-government-in-first-case-after-mh-370s-mysterious-disappearance/|archive-date=31 October 2014|newspaper=[[The Washington Post]]|date=31 October 2014|url-status=dead|archive-url=https://web.archive.org/web/20141031162337/https://www.washingtonpost.com/news/morning-mix/wp/2014/10/31/two-malaysian-boys-sue-airline-government-in-first-case-after-mh-370s-mysterious-disappearance/}}</ref> Additional civil proceedings against Malaysia Airlines were filed in China and Malaysia.<ref>{{cite news|title=MH370 disappearance: Chinese families file lawsuits seeking answers|url=https://www.bbc.com/news/world-asia-35747869|access-date=18 March 2017|work=BBC News|date=7 March 2016|archive-date=18 March 2017|archive-url=https://web.archive.org/web/20170318173929/http://www.bbc.com/news/world-asia-35747869|url-status=live}}</ref> Soon after the disappearance of Flight 370, Malaysia Airlines offered ''[[ex gratia]]'' condolence payments to families of the passengers. In China, the families were offered ¥31,000 (approx. US$5,000) "comfort money",<ref name="AutoVQ-34"/> but some rejected the offer.<ref name="20140311themalaymailonline"/> It was also reported that Malaysian relatives received only $2,000.<ref name="20140311themalaymailonline"/> In June 2014, Malaysia's deputy Foreign Minister [[Hamzah Zainuddin]] said that families of seven passengers received $50,000 advance compensation from Malaysia Airlines, but that full payout would come after the aircraft was found, or officially declared lost<ref>{{cite web|url-status=dead|archive-date=25 March 2016|archive-url=https://web.archive.org/web/20160325114003/https://timesofindia.indiatimes.com/world/rest-of-world/Flight-370-Malaysia-Airlines-begins-insurance-payments/articleshow/36488455.cms|title=Flight 370: Malaysia Airlines begins insurance payments|url=http://timesofindia.indiatimes.com/world/rest-of-world/Flight-370-Malaysia-Airlines-begins-insurance-payments/articleshow/36488455.cms|website=The Times of India|access-date=17 July 2014|date=13 June 2014|quote=[Hamzah Zainuddin] said full payout would come after the plane is found or officially declared lost.}}</ref> (which later occurred in January 2015).<ref name="BBC declared an accident" /> Summary: Please note that all contributions to Christianpedia may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here. You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see Christianpedia:Copyrights for details). Do not submit copyrighted work without permission! Cancel Editing help (opens in new window) Discuss this page