Story highlights
- Analyst: Loss of two Boeing 777s in 131 days could deal fatal blow to Malaysia Airlines
- Malaysia Airlines flight from Amsterdam to Kuala Lumpur crashed in eastern Ukraine
- The airlines is still struggling to overcome harsh criticism over its handling of Flight 370
- It has also had serious financial problems in recent years
The loss of a second Boeing 777 in 131 days threatens Malaysia Airlines with another public relations and financial blow as it struggles to overcome industry and consumer fallout after the disappearance of Flight 370.
On Thursday, Flight 17 heading from Amsterdam to Kuala Lumpur crashed in eastern Ukraine, according to reports from the Russian news agency Interfax. Early speculation centered on the possibility it was shot down at an altitude of more than 30,000 feet.
The company confirmed that it lost contact with the flight -- coded MH17. Its last known position was over Ukrainian airspace.
The plane is said to have crashed in eastern Ukraine near the border with Russia. Russian-backed separatists are fighting the Ukrainian military in the region.
As the tragedy unfolds with the obvious potential for significant wreckage and devastating loss of life, the threat to Malaysia Airlines as a company is potentially greater than any single airline disaster, said corporate turnaround expert Ted Gavin, founding partner and managing director of Gavin/Solmonese.
MH17 passenger's friend reveals regret 01:52
Flight attendant loses friends on MH17 03:05
Video shows the moment MH17 crashed 02:22
"This is a potentially fatal event for that airline, but also it's an event for them to redeem themselves in how they deal with information and the public," he said.
Missing Flight 370
In the weeks following the disappearance of Flight 370, some family members of passengers were harshly critical of Malaysia Airlines and Malaysian aviation authorities regarding the investigation.
Family members accused airline officials of not offering information about how they responded immediately after the plane disappeared. In the months that followed, they expressed distrust of the airline and Malaysia's government.
"The way Malaysia Airlines handled the disappearance of the last jet was a huge hit to confidence," said Gavin.
In the immediate hours following Thursday's disaster, Gavin said "the airline needs to share every piece of information and every piece of data they have, including the decision making process that led to that plane flying over a recent conflict region."
It also must be unashamed to discuss possible mistakes that were made, said Gavin. "What can't happen is week-long deliberations where families of crash victims don't hear from them or don't know anything."
"Frankly this is an opportunity for them to talk about what they've learned and what they've done better and what they've done differently since Flight 370."
Searchers are apparently no closer to solving the mystery surrounding the Malaysia AIrlines flight which went missing March 8 en route from Kuala Lumpur to Beijing with 239 passengers and crew.
This month, the airline's main shareholder was considering restructuring the operation and taking it private, the Wall Street Journal reported.
The Journal used the words "turn around" and "resuscitate" to describe the strategy.
New photos reportedly show MH17 crash 01:14
Malaysian P.M. 'shocked' at crash report 02:23
Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from Malaysia Airlines Flight 17 sits in a field at the crash site in Hrabove, Ukraine, on September 9, 2014. The Boeing 777 was shot down July 17, 2014, over Ukrainian territory controlled by pro-Russian separatists. All 298 people on board were killed. In an October 2015 report, Dutch investigators found the flight was shot down by a warhead that fit a Buk rocket, referring to Russian technology, Dutch Safety Board Chairman Tjibbe Joustra said.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Australian and Dutch experts examine the area of the crash on August 3, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks with her bicycle near the crash site on August 2, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Police secure a refrigerated train loaded with bodies of passengers from Malaysia Airlines Flight 17 as it arrives in a Kharkiv, Ukraine, factory on July 22, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A pro-Russian rebel passes wreckage from the crashed jet near Hrabove on Monday, July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
– Wreckage from the jet lies in grass near Hrabove on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man covers his face with a rag as members of the Organization for Security and Co-operation in Europe and the Dutch National Forensic Investigations Team inspect bodies in a refrigerated train near the crash site in eastern Ukraine on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers carry a victim's body in a bag at the crash site on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of the plane lies in the grass in eastern Ukraine's Donetsk region on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An armed pro-Russian rebel stands guard next to a refrigerated train loaded with bodies in Torez, Ukraine, on Sunday, July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Ukrainian State Emergency Service employees sort through debris on July 20, 2014, as they work to locate the deceased.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman covers her mouth with a piece of fabric July 20, 2014, to ward off smells from railway cars that reportedly contained passengers' bodies.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Toys and flowers sit on the charred fuselage of the jet as a memorial on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People search a wheat field for remains in the area of the crash site on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks among charred debris at the crash site on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers load the body of a victim onto a truck at the crash site on Saturday, July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers carry the body of a victim at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A large piece of the main cabin is under guard at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Victims' bodies are placed by the side of the road on July 19, 2014, as recovery efforts continue at the crash site. International officials lament the lack of a secured perimeter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man looks through the debris at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An envelope bearing the Malaysia Airlines logo is seen at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Armed rebels walk past large pieces of the Boeing 777 on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Ukrainian rescue workers walk through a wheat field with a stretcher as they collect the bodies of victims on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman looks at wreckage on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Pro-Russian rebels stand guard as the Organization for Security and Co-operation in Europe delegation arrives at the crash site on Friday, July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks through the debris field on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Pro-Russian rebels stand guard at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from Flight 17 lies in a field in Shaktarsk, Ukraine, on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man covers a body with a plastic sheet near the crash site on July 18, 2014. The passengers and crew hailed from all over the world, including Australia, Indonesia, Malaysia, Germany and Canada.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A diver searches for the jet's flight data recorders on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Coal miners search the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from the Boeing 777 lies on the ground July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People search for bodies of passengers on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks past a body covered with a plastic sheet near the crash site July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Belongings of passengers lie in the grass on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect the crash site on Thursday, July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People walk amid the debris at the site of the crash.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris smoulders in a field near the Russian border.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Fire engines arrive at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man stands next to wreckage.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from the crashed jet lies in a field in Ukraine.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Family members of those aboard Flight 17 leave Schiphol Airport near Amsterdam, Netherlands.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A large piece of the plane lies on the ground.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Luggage from the flight sits in a field at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A couple walks to the location at Schiphol Airport where more information would be given regarding the flight.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Flight arrivals are listed at the Kuala Lumpur International Airport in Sepang, Malaysia.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from the Boeing 777, pictured on July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man inspects debris from the plane.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from the plane is seen on July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man talks with security at Schiphol Airport on July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage burns in Ukraine.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man stands next to the wreckage of the airliner.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect a piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect a piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from MH17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An airsickness bag believed to be from MH17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from MH17. This image was posted to Twitter.
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Malaysia's Prime Minister Najib Razak tweeted Thursday that Malaysia is launching an immediate investigation into the loss of Flight 17.
In April, the Federal Aviation Administration ordered U.S. airlines to avoid airspace over Crimea, the Black Sea and the Sea of Azov. It said the region posed the "potential for conflicting air traffic control instructions from Ukrainian and Russian authorities" and the "misidentification of civil aircraft."
It's unknown if Malaysian aviation officials issued a similar warning.
The airline still faces possible lawsuits from family members that could total millions of dollars.
Boeing's twin-engine 777 boasts an excellent safety record and is among the most sophisticated airliners flying today. Its capacity is between 300 and 450 passengers and a range of about 5,700 miles.
"There have been bad years for commercial aviation," Gavin said. "But for one airline to lose two of the same type of airframe in such a short time span? It's potentially unprecedented for a commercial carrier in the modern aviation age."
Financial troubles
Analysts said it may take a government rescue to save the company from financial disaster.
Malaysia Airlines has faced increased competition in recent years from new regional airlines. It tried to boost revenue by selling more tickets, rather than raising prices, while keeping operating costs under control. It has also canceled some longer flight routes.
But the strategy never took hold, and the difficult business climate has forced the airline into the red for the past three years, leading to a loss of about $1.3 billion over that period.
The Malaysian government has helped the largely unprofitable airline before, though its previous efforts seemed only to provide temporary respite.
