Bolts From The Blue

Then Flight 17 from Amsterdam was shot down over eastern Ukraine.

Now the airline has lost two planes since the beginning of the year, and 537 lives have been lost in the process. No business plan could have prevented either disaster. Malaysia Airlines did not direct Flight 370 out into the South Pacific, and it certainly didn't shoot down Flight 17 over Ukraine, though it is fair to second-guess the decision by Malaysia Airlines and others to continue flying over the Ukrainian war zone, even as more-circumspect competitors such as British Airways and Air France took longer routes to avoid the region. Still, such tragedies could have befallen any airline. They just happened to hit this one.

This is a classic example of why financial advisers tell people to diversify. You should never invest most of your liquid funds in any one company, no matter how great an investment it seems or how well it has performed in the past.

Take BP, for example. A major accident in the Gulf of Mexico has cost it over $26 billion as of this May, as well as reams of bad press. In BP's case, while the company continues to struggle with the ongoing fallout from the accident, it is big enough and wealthy enough to survive. If you loved this article so you would like to be given more info regarding event management company in kl kindly visit our web page. Malaysia Airlines may not, at least not in its current form. Options under consideration range from taking the company private to bankruptcy, according to Bloomberg. (1)

Other airlines have toppled due to a variety of factors. National airline Swissair, once known as "the Flying Bank" due to its financial stability, was grounded in 2001 and later liquidated due to massive debt resulting from a cash flow crisis that was exacerbated by the 9/11 attacks' effect on the industry. Formerly dominant Pan American went bankrupt in 1991, after the already struggling airline faced spiking fuel costs triggered by the first Gulf War, among other issues.