Malaysia Airlines chief executive Christoph Mueller has said, while announcing a restructuring programme and plans to cut about 6,000 jobs, that the airline is "technically bankrupt".
According to BBC, the announcement came after the two major disasters that forces the airline's nationalisation in 2014.
Mueller's comments came at a press conference where he said that the decline began long before the tragic event of last year.
At present, the airline is operating normally and no flights are affected.
Malaysia Airlines flight MH370 disappeared in March 2014 with 239 passengers on board and crew members.
Four months later, Malaysia Airlines flight MH17 was shot down over eastern Ukraine by a suspected ground-to-air missile, resulting in the loss of 298 passengers and crew members.
