Malaysia Airlines May Need Government Rescue
COSTELLO: The search for missing Flight 370 isn't Malaysia Airlines' only problem, the company is also in deep financial trouble and maybe in need of a government bailout. Alison Kosik is in New York with more on this. Good morning.</s>ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning -- Carol. Here's the thing with this though you can't blame the carrier's financial troubles just on Flight 370 at this point. Malaysia Airlines is actually in a lot of trouble before the plane disappeared. It was losing a lot of money, struggling with competition from low- cost carriers. And what it tried to do is cut costs. But it really wasn't enough. So now, clearly, things could get worse for the airline financially. And here's why. Because of Flight 370, Malaysia Air could get hit not just with a slew of lawsuits but it could get hit by a crisis of confidence meaning fewer people may not want to fly the airlines. One analyst says, yes, this is an airline that may need a government bailout. In fact, the Malaysian transport minister was asked about that today. He dodged the question so at this point they are not saying yes, they're not saying no. But you look at how investors are nervous. Shares of Malaysia Airlines have dropped since the plane disappeared -- Carol?</s>COSTELLO: All perfectly understandable. How big a bailout are we talking about?</s>KOSIK: That's really a good question. You look at how the company has been doing. It has lost more than $1 billion over the past three years. That doesn't even factor in the impact of Flight 370. Clearly, there could be a sizable amount this airline needs. One analyst says though Malaysia airlines won't shut down. Here is a bit of proof for you because, you know, we have seen airlines here in the U.S. get bailouts. They go bankrupt multiple times, they merge and they still operate through it all. So Malaysia Airlines could still have options.</s>COSTELLO: I'm just thinking back to that CEO and they are calling for the CEO. The families, of course, are calling for the CEO to resign. And you have to think, he probably will resign after this is all said and done, whenever that may be.</s>KOSIK: Wouldn't be a surprise. But I think that is just tip of the iceberg.</s>COSTELLO: All right. Alison Kosik reporting live from New York -- thanks so much. And thank you for joining me today. I'm Carol Costello. "@ THIS HOUR" with Berman and Michaela after a break.