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Malaysia Airlines Management Needs Overhaul

EconMatters's picture




 

By EconMatters  

 

 

On Thursday a Malaysia Airlines flight crashed with 295 people on board over eastern Ukraine near the Russian border, there is a high probability that the conflict in this region caused this plane to be shot down by accident. There are a myriad of scenarios of how this could happen in the confusion of what essentially has been a war zone, an area that the FAA has banned all U.S. commercial flights from flying over since April of this year. These kinds of accidents happen all the time in the confusion of military hotspots if we look back at historical records, the US even shot down a commercial Iranian flight by accident, these things happen. 

 

However the real question is why didn`t Malaysia Airlines also reroute flight patterns over this area as records show that other Malaysia Airlines flights have crossed over this highly combative area the last couple of days. How stupid do you have to be to send a commercial flight over what essentially is a warzone? I bet it came down to trying to save some fuel costs for the airline, but come on this is another case of an airline being penny wise and pound foolish. How much do you think the airline actually saved by taking the most direct route? Compare this figure with the amount of money they are going to pay out in liabilities to the families of the passengers on this plane. The trial lawyers must be lining up around the block on this one, not to mention the reputational damage caused by this latest incident with a Malaysia Airlines flight. Why would anybody ever fly this airline again?

 

 

I know some may think that I am being too harsh on poor Malaysia Airlines, as they are the victim in this case right, well that is one point of view. But the more logical perspective is that this was just an accident waiting to happen, so much so that the US rerouted flights over this area, and it appears that Malaysia Airlines was just being too cheap to do the same! Talk about gross incompetence at an airline, who knows what went on with that missing flight looking back in retrospect. This airline`s incompetence brings onboard an entirely new batch of possible scenarios of what really happened to that missing Malaysia Airlines flight MH370 in March of this year.

 

One thing is apparent after this latest disaster at the airline, upper management needs to be completely overhauled. Their critical decision making abilities are non-existent, and their ability to manage and evaluate risk scenarios is severely lacking, and the way they handled the entire missing Malaysia Airlines flight MH370 investigation was incompetence at its finest! This management team is singlehandedly going to cause this airline to go out of business at this rate, and by my accounts Malaysia Airlines should go out of business. Let a competent airline buy out their operations, do humanity a favor, I mean come on flying commercial flights routinely over a combat zone, and you are surprised that an accident of this magnitude occurred? The real surprise is why it took this long given the circumstances in the region, what a bunch of idiots at Malaysia Airlines!

 

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Fri, 07/18/2014 - 06:29 | 4972423 BaghdadBob
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Malaysian MH370 = Malaysian MH17. Same airline, same make, same model, same plane. There's yours missing jet. Smouldering in a field in Eastern Europe.

Fri, 07/18/2014 - 05:16 | 4972353 wintermute
wintermute's picture

Excellent article, and he didn't even point out that two military planes had recently been blasted out of the sky from ground fire.

Yes, Malaysian Airlines failed to do proper risk analysis, and yes they were probably taking the shortest route to save fuel.

 

Fri, 07/18/2014 - 06:00 | 4972382 Sandmann
Sandmann's picture

Funny how Ukraine supplied 3 BUK systems to Georgia in the past so they could shoot down 3 Russian Su-25s........

Fri, 07/18/2014 - 04:20 | 4972302 Sandmann
Sandmann's picture

The only certainty is that this flight will not arrive in KL. If it was brought down by an air-defence system that requires several wheeled components and a trained crew not a few former conscripts with commandeered weapons.

If there was a no-fly zone to 32000 feet and Kiev stationed a battery last Wednesday it seems obvious who brought it down. Besides which I doubt any missile could be fired anywhere near Russia without the AWCs and long-range radar picking it up.

The US satellites know where it came from just as they know where MH370 went - I bet that was shot down too by Indonesia.

KAL007 was on a spying mission and probably this one was too

Thu, 07/17/2014 - 21:39 | 4971494 Cabreado
Cabreado's picture

This is the most juvenile article I've read on ZH in a long time.

Either the author has skin in the game, or ZH is actively looking for tabloidesque fluff.

Shame on all of you.

ps. dear author,

http://www.zerohedge.com/news/2014-07-17/was-flight-mh-17-diverted-over-...

update your article.

Fri, 07/18/2014 - 06:01 | 4972385 Gideonzsword
Gideonzsword's picture

Downvoted shit for brains.

"tabloidesque fluff" eh. At what point does it make sense from a risk management standpoint to ignore FAA and EAA warnings about airspace or the fact that large military transport planes are being shot down in excess of twenty thousand feet just days prior to the flight plan being filed.

This was cost cutting plane and simple. Malaysian Air needs to be shut down.

Also learn how to read dumbass. MH17's diversion wasn't ordered when the plane was already in the air. They filed that flight plan in order to shave off fuel costs and were doing it with each sucsessive flight over the last few weeks.

Think that may have been a business decision based on the recent spike in fuel prices?

Fri, 07/18/2014 - 06:00 | 4972384 Gideonzsword
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Downvoted shit for brains.

"tabloidesque fluff" eh. At what point does it make sense from a risk management standpoint to ignore FAA and EAA warnings about airspace or the fact that large military transport planes are being shot down in excess of twenty thousand feet just days prior to the flight plan being filed.

This was cost cutting plane and simple. Malaysian Air needs to be shut down.

Also learn how to read dumbass. MH17's diversion wasn't ordered when the plane was already in the air. They filed that flight plan in order to shave off fuel costs and were doing it with each sucsessive flight over the last few weeks.

Think that may have been a business decision based on the recent spike in fuel prices?

Thu, 07/17/2014 - 22:12 | 4971636 Jano
Jano's picture

u can walk away anytime.

Thu, 07/17/2014 - 22:29 | 4971698 Cabreado
Cabreado's picture

What a downright strange thing to say...

 

Thu, 07/17/2014 - 20:48 | 4971253 yellowsub
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It's as stupid as we think that $50 million deal to build a luxury resort for illegal immigrant children.  

But to them it's not stupid, it's what they planned.

Thu, 07/17/2014 - 20:12 | 4971082 Kreditanstalt
Kreditanstalt's picture

Someone shorting Malaysian Airlines stock...MH-370 and now MH-17

Thu, 07/17/2014 - 20:04 | 4971032 Setarcos
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One Malaysian airliner 'missing' on Diego Garcia, with its twin parked in a hangar in Tel Aviv and now this!!

False flag possible?  Operation Northwoods anyone?  911, etc..

Thu, 07/17/2014 - 19:06 | 4970725 miker
miker's picture

Don't you think that Mal. Airline was duped a bit?  Ukraine new there was the possibility of an overzealot rebel (aka Russian separaist) firing on an airliner but thinking it was a Ukranian plane.  So they assured the Mal. Air folks that is was OK to fly over the country.  Of course the Mal. Air folks are trying to save every dime they can because of the earlier event.

So who's culpable?  Obviously whomever fire the missle.  But also, who allowed the plane to crossover Ukraine to begin with.  I think this was planned hoping for this to happen.  295 innocent souls just for power elites. 

 

 

Thu, 07/17/2014 - 18:57 | 4970679 are we there yet
are we there yet's picture

All commercial pilot captians file their flight plan close to the time of flight based on weather and any other risk factors they perceive. Pilot captains have the final word. If this pilot bowed to his company to save fuel for maby a 10 minute flight time saving then they need less obedient pilots. The ongoing best theory on the last malasian (ma370) flight lost is that the pilot suffocated his crew and passingers then suicided. My conclusion is that Malasian air needs better pilots.

Fri, 07/18/2014 - 07:26 | 4972519 Lostinfortwalton
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The whole airline industry needs less obedient pilots.

Thu, 07/17/2014 - 18:07 | 4970406 bugsmashers
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The last time I checked, only governments had SAMs. Stop blaming businesses for government failings.

Thu, 07/17/2014 - 18:06 | 4970405 bugsmashers
bugsmashers's picture

The last time I checked, only governments had SAMs. Stop blaming businesses for government failings.

Thu, 07/17/2014 - 19:19 | 4970793 Farqued Up
Farqued Up's picture

We all know all governments are screwed up so always assume the worst.

I hold the Captain responsible as the primary safety officer. Many force majeure events aren't covered by insurance and the company will try to hide behind the war as an excuse. It may fall on them anyway depending on the laws and contracts.

Stupid on all of their parts, IMO.

Thu, 07/17/2014 - 17:51 | 4970337 mantrid
mantrid's picture

a few yerars ago Polish former President complained against the pilot who refused to rush through Georgia territory subject to similar incidents then. after the flight the president fired the pilot and got a new one. shortly after they got crashed in a terrible accident in Smolensk. some seek a conspiracy comparable to 9/11.

was it a plot's fault or just ubiquotous stupidity?

is the crisis, the Aphganistan, the Iraq, all the shit that's about to hit the fan a plot or just a ubiquotous stupidity?

Fri, 07/18/2014 - 06:30 | 4972422 Azannoth
Azannoth's picture

Sounds like a Polish-Joke, .. so I bet it's true

Thu, 07/17/2014 - 21:14 | 4971386 spencer
spencer's picture

It was a bomb morron.They got a parliamentary commission for that. Here's their website:

http://www.smolenskzespol.sejm.gov.pl/zespolsmolensk.nsf/wydarzenia.xsp

Thu, 07/17/2014 - 17:33 | 4970243 skippy9
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A national trend, "Don't blame the perps, blame the victim." While you were dissing the United States shooting down an Iranian plane, you forgot to mention the Rusian deliberate shooting down of a Korean commercial flight. Of course, when you are dealing with the animals that call themselves dissidents anything can happen.

Thu, 07/17/2014 - 18:17 | 4970443 Pool Shark
Pool Shark's picture

 

 

I agree with your basic point, but are you prepared to say that it wasn't negligent to fly directly over a known war zone? Especially when this exact same thing happened back in 2001:

http://en.wikipedia.org/wiki/Siberia_Airlines_Flight_1812

Honestly, isn't that a little like saying that a tourguide conducting a walking tour of Detroit isn't responsible for the inevitable mugging of his customers?

 

Thu, 07/17/2014 - 21:33 | 4971463 Quantum Nucleonics
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While I agree with you that it was negligent to fly there, the Siberia Airlines incident was different.  There was no hostilities. It was a training exercise gone wrong.  They were test firing a live SA-5, which has a ridiculously long range.  The lost control of the missile and assumed it landed in the ocean, but it actually kept flying and locked onto the first thing it came across, which was the airliner.

Thu, 07/17/2014 - 17:28 | 4970217 FeralSerf
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Malaysia seems to be on the CIA/MI6/Mossad shit list lately. I wonder what that's about -- too non-aligned?

Thu, 07/17/2014 - 18:18 | 4970459 Monty Burns
Monty Burns's picture

Malasia were (are?) notorious among traffic controllers at Heathrow for arriving with not enough fuel to enter a holding pattern.  This meant they had to get priority landing.  Obviously taking risks isn't new to them but flying over a war zone takes it to a new level.

Thu, 07/17/2014 - 16:53 | 4970084 nostromo17
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What so badly needed to be not seen. Probably Nuke Trains.

Thu, 07/17/2014 - 16:53 | 4970075 nostromo17
nostromo17's picture

What so badly needed to be not seen. Probably Nuke Trains.

Thu, 07/17/2014 - 16:50 | 4970063 Everybodys All ...
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Just wondering what would be the repercussions if any of those missing hand held rocket launchers from Gaddafi's Libyan collapse would be found to have taken down the airliner?

Thu, 07/17/2014 - 21:29 | 4971451 Quantum Nucleonics
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None. The plane was far beyond the reach of handheld SAMs.  A very modern Russian shoulder fired SA-18 tops out at about 17,000 feet.  It was most likely an SA-11 or SA-17, which have been spotted in rebel possession in eastern Ukraine.

Thu, 07/17/2014 - 16:31 | 4969965 Z_End
Z_End's picture

Why didn't the International Aviation authorities declare it to be a War Zone? This is not a case of bad management at Malaysia Airlines, it is a case of BAD luck. As others have stated, several other air carriers fly through there.

Thu, 07/17/2014 - 16:22 | 4969897 Overdrawn
Overdrawn's picture

.

Thu, 07/17/2014 - 16:26 | 4969896 Overdrawn
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I flew over there last week, from Astana to Kiev, on my way to Prague,  thought it was a bit dangerous but the alternative was flying to Belarus which I thought was plain suicidal when I checked the airline track record.

 So guess they are all still flying over Ukraine, not just Malaysia Airlines.

Thu, 07/17/2014 - 16:14 | 4969843 Oreilly
Oreilly's picture

A civilian 777 gets shot down at 33000 feet and you view it as a management problem?  Look at some of the other graphics on ZH and you'll see that this flight was not an anomaly, that there were a number of other flights/companies using these routes  (all of which aborted once the Malaysian plane went down).  Granted Delta, United and American weren't flying them, and I'm pretty sure Aeroflot would avoid the Ukraine, but it's apparently not uncommon for flights to fly over hot zones. 

Cursory review of Malaysian Airlines ownership shows it to be largely owned by the Malaysian government in some way, shape or form (not uncommon for national airlines).  I believe that's word enough about the incompetence of management without having to use this tragic flight as an advisory. 

Fri, 07/18/2014 - 08:51 | 4972726 AdvancingTime
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While it was technically  "ok" to fly that route the question was whether it was prudent!

 

Thu, 07/17/2014 - 21:24 | 4971433 Quantum Nucleonics
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Disagree.  It really is a legit question, not just for Malaysia Air, but everyone flying over eastern Ukraine.  An An-26 transport plane was shot down flying at 21,000 feet just a couple days ago.  Normally, an act of war would absolve liability, but this is easily deemed gross negligence and thus a payday for victims families.

Thu, 07/17/2014 - 17:11 | 4970161 QQQBall
QQQBall's picture

If Delta or American AL had been flying that route, the shooter would have stopped waiting - they would have been so far behind schedule.

Thu, 07/17/2014 - 19:08 | 4970732 123dobryden
123dobryden's picture

putin as  always, few minutes ahead of schedule

Thu, 07/17/2014 - 16:04 | 4969766 BeetleBailey
BeetleBailey's picture

Next Up...the NEW ECO-Prius Malaysian Airlines 2.0!

Zippy....goofy....stalls a lot....needs charging...

but get's you there!.....kinda

*batteries not included

**That's dynamos to you Brits...not included...sod off

Thu, 07/17/2014 - 15:57 | 4969712 tonyw
tonyw's picture

Malaysia Airlines were not the only airline overflying ukraine, others included at least Air France, Lufthansa & Thai.

 

 

Thu, 07/17/2014 - 19:04 | 4970717 123dobryden
123dobryden's picture

exactly, its gay

Thu, 07/17/2014 - 19:20 | 4970797 old naughty
old naughty's picture

No one "thought" it was war there as most-direct-routes are internationally "protected"?

Now its war in Ukraine, finally?

 

Fri, 07/18/2014 - 08:45 | 4972710 blabam
blabam's picture

Yup only tinfoil hatters categorized it as a war... 

Thu, 07/17/2014 - 15:51 | 4969686 Hippocratic Oaf
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Don't know how much was saved, but I can tell you how much was wasted.

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