Bloomberg reports that Malaysian Airlines is likely to see some big changes.  A possible new CEO, layoffs and an aircraft order review are the identified changes.
The current CEO has a contract that expires in the next few weeks. It is doubtful that he would want to renew it given the past year. Who could blame him? It may have been the most awful year any airline CEO ever had to go through.
The layoffs could be big – 3,000 to 4,000 according to the Bloomberg story. There are some 20,000 employees at the airline, and laying off a fifth will be be a severe blow. Once the state effectively takes the company private, the unions will have a tough time overcoming any layoffs.
What about fleet rationalization and orders? The table below lists the fleet and orders. Airbus is not exposed it seems. But we might expect to see the 737 orders cancelled or shifted to the right a lot. The airline ordered 737NGs in 2008 and 2011. Deliveries peaked last year with 12 and another six this year. So the 737 fleet is virtually new; over 57% date from 2010.
A new CEO at Malaysian Airlines faces a number of tough choices from day one.