Following Disasters, Malaysia Airlines Considers Brand Overhaul

Few companies can survive the the negative impact of a disaster — let alone two — but Malaysia Airlines is going to try. Following the ...

Few companies can survive the the negative impact of a disaster — let alone two — but Malaysia Airlines is going to try. Following the loss of two aircraft in the last six months, the airline’s primary stakeholder is now considering a pivot away from their “Malaysia Airlines” name to adopt a brand less steeped in tragedy.
It’s not the first time that a major corporation has attempted this feat. Private security firm Blackwater rebranded first to Xe then to Academi after  scrutiny over their operations in Iraq. Worldcom changed to MCI after they were caught lying about their finances. Even the airline industry has had its share of rebrands, with ValuJet giving up their safety-violation-riddled name with their merger with AirTran.

Adopting a different name and brand will allow Malaysia’s flag carridirectly attributed to the carrier or its staff, many consumers have expressed trepidation at the prospect of booking flights on the airline (a poll conducted by The Street suggests that one in three Americans now fears all international travel — much less international travel on Malaysia Airlines).
That contraction in business also couldn’t come at a worse time for the carrier, which according to the Associated Press hasn’t been profitable in the last three years. With or without the rebrand, the airline was in serious need for restructuring.
Steps towards the company overhaul will take place once Khazanah Nasional, Malaysia’s state investment fund is able to buy the remaining minority shares in the company and turn it into a private entity. Reuters reports that the transition is targeted for late August.













 

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