Malaysia Airline’s liabilities for flight MH370 could lead the airlines to bankruptcy, says China's state broadcaster CCTV.
The report says, according to insiders the disappearance of flight MH370 could be ‘a dagger’ in the heart for Malaysia Airlines.
The airline's liabilities for flight MH370 could top about $40 million.
MH370, which carried 227 passengers and 12 crew members on a flight from Kuala Lumpur to Beijing, disappeared from the radar screen about an hour after departing from the KL International Airport at 12:41am on March 8.
There was serious talk before flight MH370 disappeared that the airlines might enter bankruptcy because the Malaysian government doesn't want to support the losses.
Noting the Malaysia Airlines has been bleeding ‘red ink’ in recent years, the CCTV report says, the MH370 tragedy has made the airline's problems even worse. The airline has reported losses in the past three years despite operational adjustments and cost cuts.
The Malaysia Airlines had posted a massive figure of RM1.2 billion ($462 million) loss for its 2013 financial year this February, more than double the loss faced by the airline last year (2012).
MH370 was scheduled to land in Beijing at 6:30am (Malaysian time) on March 8.
Search efforts for the missing plane were divided into two corridors, namely the northern corridor from Kazakhstan and Turkmenistan border to the northern part of Thailand, and the southern corridor covering the areas from Indonesia to the southern part of the Indian Ocean.
The SAR operation involving MH370 was described as the biggest of its kind in history, with more than 27 countries involved.