Last month we noted that Malaysia Airlines, troubled by two recent tragedies, may undergo a name change as part of a coming rebrand. Today we learned a bit more about the financial details behind this project.
The airline, which turned to Ketchum to help manage the disappearance of MH370 in March, will transform from a publicly-owned and traded company into a private entity. State-run investment fund Khazanah Nasional wants to buy out the shares of the company that it does not already own, de-listing it and proceeding with a major restructuring that will almost certainly involve a comprehensive rebranding.
MA was in a bad way long before either of the flights in question. The company lost money during each of the past three years and will most likely go through a downsizing in order to stay open. Restructuring plans may face considerable opposition from the labor union representing its nearly 20,000 employees, however; the group has demanded the resignation of the company’s current CEO and, while its leaders agree that restructuring is necessary, they also expect to play a large role in all related discussions.
No word on whether Ketchum will assist in the coming changes.