MH370 families file biggest lawsuit in Malaysia

KUALA LUMPUR: Seventy-six next of kin of the passengers on board Flight MH370 have launched the biggest suit in the courts here against Malaysian Airline System Bhd and four others over the plane’s disappearance.

With the deadlines to do so up by today, the group – made up of 66 Chinese nationals, eight Indians and two Americans – filed the suit last Thursday, naming MAS, Malaysia Airline Bhd (MAB), Department of Civil Aviation (DCA) director-general, Royal Malaysian Air Force (RMAF) and the Government as defendants.

They are claiming for negligence, breach of contract, breach of statutory duty and breach of Montreal Convention against MAS

Lawyer N.Ganesan representing Indian, Chinese and American families said this is the biggest lawsuit against MAS in Malaysia as it involves a large number of families as plaintiffs.

In the statement of claim filed last Thursday, the families alleged that the plane’s disappearance on 8 March 2014 was caused by MAS’ negligence and the national carrier had breached the Montreal Convention by causing the injuries and death of all 239 passengers and crew..

Besides MAS, the families also named the director-general of the Department of Civil Aviation (DCA), Royal Malaysian Air Force (RMAF), and the government.

They claimed that DCA, RMAF and the government had conspired with MAS in conducting the investigation in a “grossly negligent manner” to delay the search, causing the death of all the passengers and crew.

They also contended the government and MAS had acted fraudulently and in a dishonest manner by hiding information about MH370’s disappearance from the public, and the families of passengers and crew.

The 76 next of kin are seeking damages and losses they suffered after their loved ones went missing.

“The families opted to file the lawsuit here because they have confidence in our court,” said Ganesan when met at the High Court here.

He also pleaded with the government not to move to strike out the lawsuit.

“This lawsuit deserves a day in court, and all the families deserve a fair trial,” he said.

When asked if the families were given consent by the MAS administrator under the MAS Act to initiate the lawsuit, the lawyer said they were denied consent. “They had previously said in the media that they would act in ‘good faith’ to determine fair and equitable compensation.”

“What they said was they were inviting next of kin to initiate lawsuits against them.”

Ganesan disclosed that an American law firm, Hod Hurst Orseck, will be joining the families’ legal team.

“They are the experts in civil aviation. We will be having the firm’s partners, Steven Marks and Roy Altman with me and lawyer Tommy Thomas.”

“When necessary, we will be filing for leave to the court for them to be conducting the trial,” he said.

Last week, 12 families of passengers from Malaysia, Ukraine, Russia and China sued MAS and the government for damages, shortly before the two years deadline for initiating a civil suit under the Montreal Convention.

Sources: The Star news and Free Malaysia Today

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Missing flight MH370 anniversary, plane hijacked by conspiracy theories!

A year on, lack of hard facts, initial confusion and overnight 'experts' add to fog of uncertainty

KUALA LUMPUR: It’s been exactly a year since Malaysia Airlines’ Flight MH370 disappeared en route from Kuala Lumpur to Beijing, and despite the most extensive search in aviation history, the fate of the Boeing 777 aircraft and the 239 people on board remains a mystery.

While the search led by Australia in the depths of the Indian Ocean continues, how and why a sophisticated aircraft carrying 227 passengers and 12 crew vanished without a trace has piqued the curiosity of many.

The authorities and aviation experts remain baffled. They believe only the plane’s cockpit voice and flight data recorders can shed light on why the plane was diverted from its original path and headed south across the vast Indian Ocean.

The lack of hard facts and the initial confusion when the plane was declared missing gave rise to a flood of anecdotal “evidence” and a crop of overnight aviation “experts” basking in their two minutes of fame.

Numerous conspiracy theories over the fate of flight MH370 have been appearing ever since, with none providing a credible clue on what could have really transpired.

In the run up to the first anniversary of MH370′s disappearance, conspiracy theorists went into overdrive.

The latest was Jeff Wise, a science journalist and author, who claimed that the plane was hijacked on the behest of Russian President Vladimir Putin and flown to a remote landing strip in Kazakhstan.

But why would Putin want to hijack a Malaysian plane in the first place?

On March 3, a senior Boeing 777 pilot claimed that flight MH370 was taken on an emotional last farewell ride over the pilot’s home island of Penang, before the pilot ditched the plane into the ocean.

Captain Simon Hardy who came up with this theory, published in Flight International magazine, is based on the initial suspicion that the MH370′s Captain Zaharie Ahmad Shah could have turned rogue and deliberately flown the plane off course.

But there is nothing to substantiate this claim.

In December 2014, a former French airline boss Marc Dugain in a six page article in Paris Match claimed that the US might have shot down flight MH370 as it approached the US military base on the Diego Garcia atoll in the western Indian Ocean, fearing a 9/11 style attack on the base.

The US military is said to have covered up the incident.

Immediately, the US embassy in Kuala Lumpur stated that there was no indication that flight MH370 had flown near the US military facility in the first place.

Former prime minister Mahathir Mohamed, too, had his own idea: just two months after the plane disappeared, he wrote in his blog that “someone” must have remotely seized control of the aircraft from the pilots.

He based his argument on a supposed patent received by Boeing in 2006 for an “anti-terrorism auto-land system” that, once activated, removed all control from the pilots to return a commercial airliner to a pre-determined landing location. But Dr Mahathir failed to mention who that “someone” could be behind the plot. So back to square one.

Everything on board the plane, including its cargo and passengers, came under suspicion right from the onset.

Conspiracy theorists claimed that the plane was carrying dangerous cargo that caused a fire on board or crippled the plane’s operating systems.

Among the items in the cargo manifest were highly flammable lithium ion batteries. Did the batteries have anything to do with the plane’s fate like the fire in South African Airways’ Flight 295 in 1987?

Other conspiracy theorists focussed on the 20 employees of Freestyle, a Texas based semiconductor manufacturing company; the equipment they were carrying had radar-blocking capabilities developed by the company, thus crippling the plane’s systems, these theorists claimed.

Fingers were also pointed at two Iranians on the passenger list who boarded the plane with forged travel documents. Could they have been terrorists who hijacked the plane to an unknown destination or sabotaged the plane?

But Interpol revealed that the pair had no links with any terrorist groups and were on their way to seek asylum in Europe.

And of course there were the out-of-this-world conspiracy theories. The plane was hijacked by aliens. A Malaysian bomoh claimed the plane was hijacked by elves and was permanently suspended in the air.

Two months after the plane disappeared, Indian film director Rupesh Paul put up a trailer for a film about MH370 at the Cannes Film Festival, to be called “The Vanishing Act: The Untold Story of the Missing Malaysian Plane”.

CNN, which had given the MH370 story its full wall-to-wall treatment, described it tellingly: “If the Cannes Film Festival had an award for most squirm-inducing production, it would surely go to the producers of a new thriller telling the “real” story of the still-missing Malaysian Airlines jet.”

National Geographic turned out a documentary that was more cautious in its approach visualising all possibilities including a catastrophic failure of aircraft systems or structure. But there are not definitive answers.

The confusion in the first days of the aircraft’s disappearance led to parallels with conspiracy theories about the assassination of US President John F. Kennedy, mainly that the government had covered up crucial information in the aftermath of the incident.

LOOKING BACK: THE FINAL MOMENTS OF MH370

* Malaysia Airlines’ Flight MH370 departs from Kuala Lumpur International Airport in Sepang at 12.41 am to Beijing with 227 passengers and 12 crew. It was a code sharing flight with China Southern Airlines.

At the helm of the Boeing 777-200 ER was veteran pilot Capt Zaharie Ahmad Shah.

The passengers include 153 Chinese nationals, 38 Malaysians, 12 Indonesians, six Australians, three French, four Americans, two from Ukraine, New Zealand and Canada respectively and one each from Russia, Taiwan, Italy, the Netherlands and Austria.

Less than one hour into the flight, as the plane approached the Igari Waypoint, in South China Sea, where it was to be handed over to the Ho Chi Minh City air traffic control, it disappeared from the radar screen.

“Good night Malaysian three seven zero” were the last words spoken from the cockpit. No distress signal received.

Subesequently the plane was tracked by Malaysian military radar as it deviated from its planned flight path and crossed the Malay Peninsula and headed towards the Andaman Sea.

Communications pings between the aircraft and Inmarsat’s satellite network concluded that the flight continued until 8:19 am towards southern Indian Ocean. However, the precise location could not be determined.

A major multinational search was mounted without success. Australia leads the second phase of the search with the cost mounting.

- BERNAMA/FMT

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Medicines for ailing MAS: losses RM2bil, 6,000 job cuts, RM6bil capital injection a bailout?

New medicine for ailing MAS

FOR the first time ever, a government-linked company (GLC) will lay off workers and renegotiate contracts with suppliers and employees – a move that will obliterate the view that companies owned by the Government provide steady employment and are safe paymasters.

In its strongest action to rehabilitate the ailing Malaysia Airlines (MAS), the Government has given its undertaking to its investment arm, Khazanah Nasional Bhd, with the necessary legislation to bring the employees and suppliers to the negotiation table.

This is among the highlights of a 12-point plan unveiled by Khazanah yesterday to resuscitate MAS.

To recap, Khazanah, in a bid to save MAS, has proposed to take it private and delist it by year-end. It has a 69% equity in MAS and has offered to buy the remaining 31% in the airline at 27 sen a share.

A new Bill called the MAS Act will be tabled in Parliament before July next year to facilitate the migration of MAS’ existing operations into a new company (Newco), which will take over MAS’ operations on July 1 next year.

“The MAS Act is to facilitate the migration of the existing operations to a Newco. It is something that was proposed by the Government so that a new airline can take over. It will have a finite life,” Khazanah managing director Tan Sri Azman Mokhtar told the media yesterday.

“The Government will allow the transfer of the AOC (air operator’s certificate) and tax losses to the Newco.”

Apart from the establishment of a Newco to carry on the business of the existing airline, the plan calls for the conversion of some debt into equity and Khazanah injecting RM6bil more into the airline. Kumpulan Wang Persaraan (KWAP) agreed to swap its RM750mil existing perpetual sukuk with ordinary equity, meaning that it will eventually become shareholder in MAS.

 

Azman: 'The MAS Act is to facilitate the migration of the existing operations to a Newco'.

Of the RM6bil, a sum of RM1.4bil is for the privatisation of MAS, RM1.6bil for cost incurred in shutting down the existing company and a voluntary separation scheme to reduce the workforce by 6,000 and penalties for early termination of contracts with suppliers, and RM3bil for working capital for the Newco to take over the operations.

Since taking over MAS in 2001 from Tan Sri Tajudin Ramli, Khazanah has injected more than RM7bil into MAS, which Azman does not think would be recoverable.

However, he is confident that the RM6bil capital that will be pumped in can be recovered.

“We have done the financial modelling and are confident that the money can be recovered,” he said.

“Also, it is a conditional injection of funds, meaning that the money will only be available subject to the MAS management fulfilling the conditions set out in the recovery plan.”



Azman admits that renegotiating contracts with suppliers, leasing agents and converting debt to equity could have some effect on the credit ratings of MAS and other companies within the stable of the strategic investment fund.

However, he opines that the shedding of the workforce and the renegotiations of contracts is only to bring about a significant change in work practices and supply contracts.

“It would not be done arbitrarily. There is some bench-marking on the pricing of the contracts. The suppliers will be given an option to migrate to the Newco on new terms,” he said.



Azman is also confident that the new MAS will achieve profitability by the end of 2017. The new plan will also see net gearing reduced from 290% now to about 100% -125% eventually.

But not many share Azman’s sentiments, as MAS has undertaken half a dozen restructuring exercises over the past 13 years and yet remains in dire straits.

“I obviously do not share the same sentiments as Azman and am not as optimistic about seeing a profit in 2017. I don’t think the new plan goes far enough to resolve the structural problems within the airline. You can call it downsizing or rightsizing, and the plan may appear bold and courageous by slashing 6,000 jobs, but the question is: how much can you actually save from that?” Shukor Yusof, an analyst with Malaysia-based aviation consultancy Endau Analytics, asks.

He says, “The real issue in MAS the past decade is an ill-conceived strategy and financial mismanagement. That’s the key contributors to the losses, shareholder value destruction and the mess built up over the years. While I do agree that MAS is overstaffed, resulting in low productivity levels compared to Singapore Airlines (SIA) or Cathay Pacific, it is not a critical aspect of the overall picture. The losses registered over the years by the airline are not because the airline is overstaffed, but because it had a management which, unfortunately, had little understanding of the airline industry and was slow to adapt to the dynamics of the landscape of the industry,” Shukor says.

Route rationalisation 

MAS has been loss-making for the past 10 quarters, and the amount has ballooned since the two tragedies hit the airline within a space of four months since March this year. The first was on March 8 when a plane, MH370 en route to Beijing, disappeared.

The second was on July 17 when MH17, which was on the way from Amsterdam to Kuala Lumpur, was shot down while flying over Ukraine.

Even before the first airline tragedy on March 8, the airline was already losing close to RM1bil a year due to competition from low-cost carriers and Middle-Eastern full-service carriers (FSCs).

However, the losses exacerbated to RM2bil following the airline tragedies.

For the second quarter of 2014, MAS announced on Thursday an RM307mil net loss, bringing its first-half losses to RM750mil.

 

A lack of demand and the massive cancellations of flights has become a norm after the two incidents, and the policy to refund passengers after the MH17 mishap has further seen flight bookings going down. The airline’s strategy of pushing for loads at the expense of yields has also backfired. However, it has embarked on a new plan to drop fares to win back customers, a strategy which, however, does not guarantee high yields, which MAS needs.

MAS’ current yield of 20 sen per seat kilometre is lower than Cathay Pacific’s 24 sen and SIA’s 22.9 sen.

Azman says there are several conditions for the money to be injected into MAS.

Among them is route rationalisation, whereby the emphasis is on destinations that are within eight hours of flying time. The plan is also to bring short-haul cost within the 15% of the low-cost carrier competition, at parity with Middle-Eastern FSCs and below those of the regional FSC competition. The Newco will only focus on profitable routes and secure global connectivity via oneworld and other alliances, says Khazanah, adding that MAS will come up with a business plan and fleet requirements.

Maybank Investment Bank senior analyst Mohshin Aziz says that with one-third of the jobs going, the route network also needs to be reduced by one-third.

“We were hoping to get the details of the route cuts, but they were not forthcoming. We really believe MAS should terminate its long-haul routes, such as Frankfurt, Amsterdam, Paris, Istanbul and even Dubai as soon as possible.

“They need to reduce frequencies on their Australian routes to twice daily from thrice daily now, and terminate the Brisbane and Adelaide routes,” Mohshin says.

Since the network will be reconfigured, MAS will also have to reduce the number of aircraft it flies from its current fleet of 127 to bring down cost.

Khazanah says MAS needs to renew its focus on revenue management to increase unit revenue by 10% to 15%, and among other things, it needs to also unbundle ancillary products and services and revamp its loyalty programme.

Staff buy-in

A major part of the success of Khazanah’s new plan for MAS hinges on the support of the airline’s employees and their unions. Yesterday, Azman met representatives of the unions to tell them of the new plan, but will the unions support the plan?

A major part of the success of Khazanah's new plan for MAS hinges on the support of the airline's employees and their unions.

“It was a good and frank discussion. I think we were at pains to try and explain what would be happening. And explain that the vessel of the Newco will not be able to carry everybody,” Azman says.

Throughout the day, Khazanah officials and MAS senior team members had various briefing sessions with its employees.

For now, the ties are somewhat strained between the senior team and many of the unions and their members, with many worried about the selection process of who would be axed.

Under the new plan, MAS will undertake a voluntary separation scheme to reduce its workforce to 14,000, with the plan also involving reskilling, redeployment and job creation.

“There seems to be a renewed effort to harmonise now so that Khazanah’s vision of rebuilding a national icon will succeed. But at a glance, the plan is wishy-washy and they are not able to give us details. We are worried as to who will decide on who stays and who leaves. We also do not want the existing team to decide, as there would be no professionalism, only partiality,’’ said a source.

Khazanah says the process of transfer migration and separation will be conducted with “utmost care, fairness and due process”.

A Khazanah official added that “the decision on who stays and who leaves will be done by the Newco”.

“The search for a new chief executive officer (CEO) for the Newco has begun and we are looking at both Malaysian leadership talent and global aviation specialists, basically for the CEO (post),” Azman says.

“Hopefully they will hire the best in the industry and not just anyone for the hot seat. It should be someone with entrepreneurial spirit and expertise to drive profits,’’ says an expert.

The current group CEO Ahmad Jauhari Yahya will leave MAS in June next year.

The plan to set up a Newco is also seen as a way to weaken MAS’ vociferous unions, although an expert says that the Newco could also set up new unions, provided there are no conditions attached to the Newco’s staff appointment letters.

Would minority shareholders sell out?

The biggest challenge Khazanah will face is whether it can get enough minority shareholders and institutional funds to vote in favour of its plan to privatise MAS at an EGM to be called in the coming weeks.

It needs 100% acceptance to take MAS private, and then there will be grounds for the Act to be established.

Khazanah cannot vote at the EGM, given the fact that it is an interested party and institutional shareholders only hold less than a 4% equity in MAS.

Now that there is a serious plan to resuscitate MAS, it is possible that some minorities may want to hold back and not sell their shares. Not only will MAS be profitable by 2017, but there is also a plan to relist the Newco in 2018-2020.

“There will be some minorities who will give up their shares, as holding MAS has been one painful episode. But there are yet others who may see that there is going to be creation of value in the future. So, why sell and miss out on future growth?” opined a source.

However, if Khazanah fails to get 100% equity in MAS, then the entire revival plan will be off.

By B.K. Sidhu The Star/Asia News Network

Radical plan to revive MAS

Khazanah Nasional Bhd has unveiled a radical plan to revive the ailing Malaysia Airlines that calls for job cuts, a capital injection of up to RM6bil and creation of a new company (Newco) to carry the airline business.

To facilitate the migration of the existing business to Newco, the Government will table a new law in Parliament called the MAS Act.

Khazanah managing director Tan Sri Azman Mokhtar said that the new legislation would have a finite life and was needed to facilitate the migration of the existing business to Newco.

In a move to ensure that Newco has a leaner workforce and cleaner balance sheet to compete effectively in a tough operating environment, Khazanah wants to see job cuts of 30% from the existing MAS workforce of 20,000 employees.

It is one of the many conditions Khazanah has imposed on the management of MAS if it were to inject more funds into the ailing airline.

 

“In our opinion, we think that Newco with its business model will require a workforce of about 14,000. A net reduction of 30% is an across-the-board number,” said Azman at a media briefing yesterday.

The job cuts also affect the top leadership of MAS, which comprises a team of 500 staff called the Extended Leadership Team (ELT). Most of them were holding senior positions with long service.

Azman said the current chief executive officer (CEO) of MAS, Ahmad Jauhari Yahya, has indicated his wish to leave.

In commending the MAS CEO for having led the airline during its toughest period, Azman said Ahmad Jauhari would remain in place until the transition.

“We have embarked on a global search for a new CEO and have engaged an international firm to undertake the task,” he said.

Some of the other conditions of the 12-point plan mapped by Khazanah for the recovery of MAS include the relocation of the airline’s existing headquarters in Subang to the KL International Airport and Khazanah owning 100% of MAS.

Towards this end, Khazanah is undertaking a privatisation of MAS at 27 sen per share.

Azman clarified that Khazanah had engaged a consultancy to undertake a review of MAS on Feb 26 this year, before the first airline tragedy on March 8.

“The review came about after the Government was concerned about the financial and general state of affairs in MAS,” he said.

On March 8, a MAS aircraft en route to Beijing went missing and further exacerbated the airline’s losses.

The Cabinet approved MAS’ proposal on Wednesday and yesterday the various stakeholders, which are mainly the unions, existing airline management and some key directors, were summoned for a briefing.

The management and union have been told to work together to decide the shedding of the workforce, he said.

The MAS Act is expected to arm Khazanah with the necessary bite to carry out the radical measures, especially in negotiating the new contracts and collective agreements of the unions.

“The Act would allow for the Air Operators Certificate (AOC) to be transferred from the existing MAS to Newco and the assets and liabilities,” said Azman.

By July 1 next year, Newco is expected to take off.

Azman said that employees who were not absorbed into Newco would be offered a retrenchment scheme or given an option to be absorbed into a scheme for re-training.

Towards this end, Khazanah is working with three business process outsourcing firms that have vacancies for 3,500.

Azman said Khazanah explored several options in coming up with the plan.

“Putting in more money into MAS would not save MAS. So we felt that enabling MAS to start on a clean slate and putting in new money into Newco provided it met the conditions stated was the best option,” he said. - The Star

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Lots of public funds will be spent to make things right at MAS, and it will start with the RM1.4bil takeover of the airline.

THE events of MH370 and MH17 have soured the operations of Malaysia Airlines (MAS), where the extent of the damage from these events on its financials will be more accurately shown when the airline reports its quarterly figures next week.

While these tragedies have led to MAS’ major shareholder, Khazanah Nasional Bhd, offering to not only take the company private but also undertake what appears to be an exhaustive overhaul of the airline’s operations, the problems at MAS have been simmering for a long time now.

The airline has been losing money for some time, and previous turnaround plans, in hindsight, were akin to applying bandages when major surgery was needed. Previous turnaround plans might have just delayed what needs to be done now.

But all gloves are off with the upcoming overhaul when it comes to salvaging MAS. Political will appears to be there, judging from comments made by the Prime Minister and the airline will undergo a big transformation on how it operates.

Lots of public funds will be spent to make things right at MAS, and it will start with the RM1.4bil takeover of the airline. The overhaul of MAS should be more than just cosmetic or quick fixes.

While the airline’s revenue will surely slump, MAS also has to deal with its cost. As it stands, experts have pointed out that the size of its cost structure is one that supports a far larger network than what MAS currently operates.

Tackling costs won’t be easy also, given that it is a government-linked company (GLC) with social obligations. In fact, MAS, like its other GLC brethren, has commitments that most private companies just don’t have.

Will the overhaul of MAS take into account just how far it needs to go to remove a certain portion of such obligations, and if it is happening in MAS, are other GLCs too shouldering the same kind of burden as MAS is?

It has been long suspected that the airline has been losing lots of money due to leakages and some have even alluded to political interests having their fingers in the pie.

Khazanah should undertake a thorough review of the supply chain, and conduct forensic accounting if needed to ensure corruption is weeded out of the company. MAS needs to make sure that the services and supplies bought are at market rates and of a fair value.

For Khazanah, it needs to revisit its GLC transformation programme and see whether it has been as effective as what the market expected it to be. There has been a series of colourful books and manuals issued, and among them, the red book. Just how far have the initiatives of the red book, which deal with procurement, been successful in reducing costs?

But the need to ensure support for its social obligations can be tough on a GLC. For one, if the contracts given or services and goods acquired are inflated beyond an acceptable amount, then it will just balloon cost. Social obligations that relate to the need for support to help companies grow in scale is understandable, but not handouts.

Even Petroliam Nasional Bhd president and chief executive officer Tan Sri Shamsul Azhar Abbas has inferred that there is pressure from Government interference and the need to back vendors that charge quite a bit above market prices.

If such pressure is existent in the national oil company that is different from other GLCs, then one can hypothesise that such pressure is prevalent among GLCs.

There needs to be a balance between social obligations and market value. GLCs cannot go on supporting programmes at inflated costs if the companies they are supporting have not shown improvements or are detrimental to their own well-being. This is because doing so will have a telling effect on the performance of the companies.

Should its costs become inflated as a result of such support, then there could be implications on the performance of the GLCs. For one, investors will make that distinction and attach a lower market multiple for GLC companies compared with its private-sector peers. Some will say that it is already being seen in some GLCs.


By: JAGDEV SINGH SIDHU The Star/Asia News Network

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Another Malaysian plane crash shrouded with mystery in Ukraine killing all 298 people!

Photo taken on July 17, 2014 shows the debris at the crash site of a passenger plane near the village of Grabovo, Ukraine. A Malaysian flight crashed Thursday in eastern Ukraine near the Russian border, with all the 280 passengers and 15 crew members on board reportedly having been killed. (Xinhua/RIA Novosti)

MOSCOW, July 17 (Xinhua) -- A Malaysian flight crashed Thursday in eastern Ukraine near the Russian border, with all the 283 passengers and 15 crew members on board reportedly having been killed.

A Malaysia Airlines Boeing 777, which was flying from Amsterdam to Kuala Lumpur, started descending 50 kilometers before entering Russian airspace, and was subsequently found burning on the ground on Ukrainian territory," Interfax news agency quoted an aviation source as saying.

The plane disappeared from radar at an altitude of 10,000 meters and then crashed near the city of Shakhtarsk in Ukraine's Donetsk region, it said, citing Ukrainian law enforcement authorities.

An advisor to Ukrainian Interior Minister Anton Herashchenko wrote on his Facebook that "280 passengers and 15 crew members have been killed."

A Xinhua reporter was stopped by local militias some 5 km from the crash site, and was asked to wait for permission to move closer. Witnesses said they heard loud explosions and saw human remains and identity documents scattering around.

The Chinese Embassy authorities in Kiev maintained close contact with Ukrainian partners, and were verifying information on any potential Chinese casualties, an official told Xinhua.

Ukrainian President Petro Poroshenko said the plane could have been shot down, but the Ukrainian Armed Forces had nothing to do with it. Prime Minister Arseny Yatsenyuk said the government has formed a special investigative commission for the incident.

The Ukrainian Prosecutor General's Office said law enforcement authorities could not access the crash site for investigation, as it is controlled by the self-proclaimed Donetsk People's Republic (DPR).

Russian President Vladimir Putin Thursday informed U.S. President Barack Obama via telephone of the plane crash, and "had a detailed discussion on the acute crisis in Ukraine," the Kremlin press service said in a statement.

Putin said both of the conflicting sides have to cease fire immediately, and Russia had taken measures to resume consultations of the contact group "with participation of representatives of southeastern Ukraine."

The president has also offered his "deep condolences" to Malaysian Prime Minister Najib Razak over the deadly incident.

The cause of the crash was yet to be determined, but Kiev and eastern separatists have traded accusations over the responsibility. Kiev authorities said the militias shot down the plane with a Buk air defense system.

Meanwhile, Andrei Purgin, first deputy prime minister of the DPR, said they "simply do not have such air defense systems, our MANPADs have a firing range of only 3,000 to 4,000 meters," Interfax reported. Purgin said they will give the plane's flight recorders to Moscow for testing.

"Of course, we most likely will give them to the Interstate Aviation Committee (IAC), to Moscow. High-level experts, who will be able to determine exactly the reason of the catastrophe, work there," he said.

The crash came on the same day the DPR separatists claimed they had shot down two Ukrainian warplanes, an An-26 transport jet and a SU-25 fighter, which Kiev laid the blame on Russia.

Malaysia Airlines said in a statement it had received notification from the Ukrainian air traffic control that it had lost contact with flight MH17 at 1415 GMT, some 30 km from the Tamak waypoint, approximately 50 km from the Russia-Ukraine border. The Boeing 777 had left Amsterdam at 12:15 p.m. local time and was expected to arrive in Kuala Lumpur at 6:10 a.m. (2210 GMT) on Friday, the airline said.

Malaysian Prime Minister Najib Razak said Friday on his twitter account that he was "shocked by reports that a Malaysian Airline plane crashed," adding that they have launched an immediate investigation.

Meanwhile, Malaysian Deputy Foreign Minister Hamzah Zainuddin said that his ministry was working closely with the Russian and Ukraine governments on the tragic incident.

"We are working closely with both governments to get information," he said, adding, "currently we have some of the information, only waiting to be verified." - Xinhua

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‘Plane may have been shot down’

PETALING JAYA: A Malaysia Airlines plane flying from Amsterdam to Kuala Lumpur has crashed in the Ukraine-Russia border, and Ukraine’s president said the jet may have been shot down.

Reports said the Boeing 777-200ER carrying 280 passengers and 15 crew is believed to have been shot down near the village of Grabovo in the rebellion-wracked region of Donetsk.

MAS said it lost contact with the aircraft at 1415GMT (10.15pm Malaysian time).

Flight MH17 left Amsterdam’s Schipol Airport at 12.15pm local time (6.15pm, Malaysian time) and had been scheduled to arrive in Kuala Lumpur at 6.10am today.

Interfax-Ukraine news agency quoting unnamed security sources said teams from the emergency services were trying to reach the scene. However, it has not been determined who is responsible for the act and whether it was intentional or accidental.

Crash site: Smoke rising at the site where MH17 is said to have crashed in the donetsk region in ukraine.

The fate of the passengers and crew has yet to be verified, but reports have quoted the Ukraine Interior Ministry as saying there were no survivors.

Ukrainian President Petro Poroshenko said in a statement in his website that the Ukraine armed forces did not fire at any targets in the sky.

The country’s Prime Minister Areseny Yatseniuk has ordered an investigation into what he said was an "airplane catastrophe".

However, Anton Gerashenko, an adviser to the Ukraine interior minister, said on his Facebook page the plane was flying at an altitude of 10,000m when it was hit by a missile fired from a Buk launcher. The Buk missile system can fire missiles up to an altitude of 22,000m.

Rebel leaders have also denied involvement, telling Russian news agencies that they were not responsible for shooting down the plane and pledged to allow "international experts" access to the crash site.

The pro-Russian rebels, who are fighting central Kiev authorities, claimed the plane had been shot down by a Ukrainian jet.

"Witnesses saw the plane being attacked by a battle plane of the Ukrainian forces," the government of the self-proclaimed Lugansk People’s Republic said in a statement. "After that, the passenger plane split into two in the air."

MAS said on its Twitter feed that it "has lost contact of MH17 from Amsterdam. The last known position was over Ukrainian airspace. More details to follow."

The region where the plane went down has seen severe fighting between Ukrainian forces and pro-Russia separatist rebels in recent days.

On Wednesday evening, a Ukrainian fighter jet was shot down by an air-to-air missile from a Russian plane, Ukrainian authorities said yesterday.

Earlier this week, Ukraine said a military transport plane was shot down on Monday by a missile fired from Russian territory.

This is the second tragedy involving MAS in four months, when a Beijing-bound airliner – also a Boeing 777-200ER – with 239 people on board went missing an hour after it took off from Kuala Lumpur International Airport on March 8. The search for Flight MH370 – in the southern Indian Ocean – is still ongoing. - The Star/Asia News Network

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Flight MH370: two satellite objects spotted in southern Indian Ocean

A satellite image shows possible debris from the missing Malaysian plane 

Australia's prime minister has announced that two objects possibly related to the missing Malaysia Airlines flight have been spotted on satellite imagery and an air force aircraft had been diverted to the area to try to locate them.

The Orion aircraft was expected to arrive in the area oon Thursday afternoon, Prime Minister Tony Abott told Parliament in Canberra. Three additional aircraft are expected to follow for a more intensive search, he said.

^{Royal Australian Air Force pilot, Flight Lieutenant Russell Adams from the tenth Squadron, piolts his AP-3C Orion over the Southern Indian Ocean}
 

"New and credible information has come to light in relation to the search ... in the south Indian Ocean," he said. "The Australian Maritime Safety Authority (AMSA) has received information based on satellite imagery of objects possibly related to the search."

"Following specialist analysis of this satellite imagery, two possible objects related to the search have been identified," he said.

Mr Abbott said he had already spoken with his Malaysian counterpart Najib Razak and cautioned that the objects had yet to be identified.

"The task of locating these objects will be extremely difficult and it may turn out they are not related to the search for MH370," he said.


^{An Australian Maritime Safety Authority (AMSA) graphic shows the search areas for the Malaysia Airlines (AP)}
 
No confirmed wreckage from Malaysia Airlines Flight MH370 has been found since it vanished from air traffic control screens off Malaysia's east coast early on March 8, less than an hour after taking off.

The search for the plane was yesterday narrowed down to an area in the southern Indian Ocean off the coast of west Australia.


^{Australian Prime Minister Tony Abbott tells parliament in Canberra that satellite imagery has found two objects possibly related to the search for missing Malaysia Airlines flight MH370}
 
Investigators believe that someone with detailed knowledge of both the Boeing 777-200ER and commercial aviation navigation switched off the plane's communications systems before diverting it thousands of miles off its scheduled course from Kuala Lumpur to Beijing.

Exhaustive background checks of the passengers and crew aboard have not yielded anything that might explain why.

Relatives of passengers of the missing Malaysia Airlines plane are gathered at a television viewing room in Beijing, China (AFP/GETTY)

The FBI is helping Malaysian authorities analyse data from a flight simulator belonging to the captain of the missing plane, after initial examination showed some data logs had been deleted early last month.

- The Telegraph

Expert: Missing plane more likely found in southern corridor (Video)

An aviation expert believes there's a high possibility that the missing plane could be found in the southern search corridor. But he added, it’s unlikely that the plane would have found a runway to safely land on.


"Plane unlikely to avoid radar detection in Northern corridor...also zero possibility for the plane to land in a temporary airport, technically it works, but it’s very hard, requires geological conditions, and people on board will suffer heavy injuries." Armartya De, Sr. Aviation Consultant of Frost & Sullivan, said.

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If MH370 was a hijack bid, it was a terrorism motivated; China deploys 21 satellites and 11 ships search aid

It is increasingly common for terrorist groups not to claim responsibility for their actions, a leading expert says, amid heightened speculation one or both of the pilots may have been involved in diverting Malaysia Airlines flight MH370.

Greg Barton, the international director of the global terrorism research centre at Monash University, said there were several reasons a terrorist group might remain silent about hijacking the flight.

''Perhaps this operation was only partially successful, and that the plan had been to turn back and crash into the Petronas Towers in Kuala Lumpur,'' Professor Barton said. ''Perhaps the pilots foiled the plan, we will never know.

''But that would be a motive for a group not to claim it, as they may want to try it again,'' he said.
  Conjecture over pilot involvement in the plane's disappearance was fuelled on Sunday by a new timeline suggesting the flight's signalling system was disabled before a pilot spoke to air traffic control without mentioning any trouble.

But whether it was an act of terrorism remains a question that may not be answered unless the black box flight recorders are found.

Professor Barton cited the 1988 Lockerbie disaster, in which Pan Am flight 103 was destroyed by a bomb over a Scottish town, killing 270 people, as an example of an attack no one admitted ordering.

''It also took quite a while for al-Qaeda to claim responsibility for 9/11,'' Professor Barton said. ''And in the November 2008 attacks at several Mumbai hotels, Lashkar- e- Taiba was blamed but never actually claimed it,'' he said.

Clive Williams, a visiting professor at the Australian National University's centre for military and security law and an adjunct professor at Macquarie University's centre for policing, intelligence and counter terrorism said while terrorism could not be ruled out, it seemed less likely than other possibilities.

''Terrorism is by definition politically motivated with a strategic outcome in mind. If terrorism was the motivation you would expect that the perpetrators would have already used the plane as a weapon against a possible target, such as Mumbai or Colombo, would have made political demands, or would have tried to put pressure on a target government.''

Since 2000 there have been only 18 hijacks or attempted hijacks of large passenger aircraft. Of these, seven were by passengers wanting to get to a destination to seek asylum, one was criminally motivated to steal the cargo, six were by mentally ill persons, and four were politically motivated (counting September 11 as one incident), Professor Williams said.

By Anne Davies The Sydney Morning Herald

11 Chinese ships team up in Singapore for search mission

It has been 11 days since the Malaysian flight MH370 went missing. 239 passengers were on board the ... 

China deploys 21 satellites to assist hunt for MH370

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MH370 flight confirms: “deliberate acts”, suggest hijacking and terrorism planning, crew under scrutiny

 Malaysian PM confirms that deliberate acts were involved in the plane’s disappearance

Any terrorist seizure of the plane ‘would have required one hell of a piece of planning





Flight MH370 weighs 250 tonnes, spans more than 60 metres and has been hunted by search teams from more than a dozen countries, but after more than a week the search for missing Malaysian Airlines jet is becoming vastly bigger. And vastly more complicated, amid suggestions of a “deliberate act” to take it off course.

The expansion came after leaked reports from US officials, suggestions of terrorism and the revelation from Malaysia's Prime Minister that investigators believed new satellite data showed “deliberate action by someone on the plane” had flown the aircraft and it's 239 passengers and crew of course for up to seven hours.

Speaking at a press conference in the Malaysian capital, Najib Razak said: “Clearly, the search for MH370 has entered a new phase. Over the last seven days, we have followed every lead and looked into every possibility… we hope this new information brings us one step closer to finding the plane.”

He added that, based on the data, investigators were now pursuing the belief that the plane's last location was along one of two possible corridors or arcs - a northern route stretching from the border of Kazakhstan and Turkmenistan to northern Thailand, or a southern one stretching from Indonesia to the vast emptiness of the Indian ocean.


Click here for enlarged view of graphic

And as police raided homes of the pilot and co-pilot, the Prime Minister said that, while investigators were still exploring “all possibilities”, attention was increasingly being focused on the possible role of the passengers or crew of the plane

This weekend Malaysian officials, along with experts from the US National Transportation Safety Board, the Federal Aviation Administration, and Britain's Air Accidents Investigation Branch, continue to refine the new data, which originated from signals sent by the plane via the British company Inmarsat's satellite network over the Indian Ocean. The Independent on Sunday understands that these signals came from a “failsafe” function of an Inmarsat Swift 64 communications system fitted to the ill-fated aircraft.

The announcement by Mr Najib was the most definitive suggestion that investigators were exploring a possible hijacking or terrorism.

Aviation consultant Chris Yates said: “It's increasingly clear that the hand of some form of terrorism is at play here, whether from a group or one skilled individual. The levels of specialist aviation knowledge on display here cause me to cast my mind back to 9/11 when hijackers had acquired a level of technical and flight training.”

David Gleave, a former air crash investigator, added that any terrorist seizure of the plane “would have required one hell of a piece of planning”.
 

The home of Fariq Abdul Hamid, 27, the first officer on the missing Malaysia Airlines flight, about 15 miles west of Kuala Lumpur. Credit Lai Seng Sin/Associated Press 

Police drove to the residential compound in Kuala Lumpur where the missing plane's pilot Fariq Abdul Hami lives, according a guard and local reporters  

Phil Giles, a former air safety investigator who worked on the Lockerbie Bombing, said: “Taking over a Boeing 777 without experience or skill is akin to some Somalian bloke in a tiny boat trying to take over a super tanker and captain it. Unless the hijacker has a fair amount of technical and aviation knowledge he would have to rely on putting a gun to the pilot's head.”

In Malaysia this new information meant an end to the search in the South China Sea and a renewed focus on the Indian Ocean. At the same time officials were continuing to get radar data and other relevant information from the countries whose air space the two routes being examined pass through. The northern corridor would trace a busy route, passing northern Thailand and Burma and entering into China on the way towards central Asia.

The southern route, meanwhile, would pass over Indonesia and then the open waters of the southern Indian Ocean. The New York Times reported that officials believed the southern corridor to be the most likely to have been taken by the plane. “The US Navy would not be heading toward Kazakhstan,” a person briefed on the investigation told the paper.

Other have suggested the complexity of the search and sensitivity of military radar and satellite information may have been a cause of delay, pointing to the fact that American newspapers have been briefed by the Pentagon and that the destroyer USS Kidd and a P-8 Poseidon search plane moved into the Andaman Sea and Bay of Bengal prior the Malaysian government's announcement on Saturday.

Tony Cable, an investigator who worked for the UK Air Accidents Investigation Branch for 32 years, said: “The sensitivity of some of the military radar and satellite information here is clearly posing a problem for the investigation…. I suspect there is an awful lot more information that is known that is not being released.”

The last confirmed location of MH370 on civilian radar off Malaysia was at 1.31am last Saturday, about 40 minutes after it took off from Kuala Lumpur International Airport. At that point it was heading north-east across the mouth of the Gulf of Thailand on what should have been a six-hour flight to Beijing.

After that it seemed the plane disappeared from civilian radar but showed up - as a blip - on radar used by the Malaysian military. The latest revelation shows that the Boeing 777 continued to leave the faintest traces, in a series of “pings” from its Inmarsat Swift 64 system.

This 20-year-old communications is device fitted to 90 per cent of the world's wide body jet aircraft and in the case of MH370 enhanced the operation of the aircraft's flight transponder and Aircraft Communications Addressing and Reporting System (ACARS), both of which were deliberately deactivated early in the flight.

The IoS understands that the disabling of the ACARS system enabled a failsafe “ping” mode in the Swift 64 system, which has been compared to an “I'm here” announcement. The last of these messages came at  8.11am local time last Saturday, more than seven-and-a-half hours after it took off.

When fully operational Flight MH370's ACARS and Swift 64 only offer very basic altitude and location information and The IoS understands the aircraft wasn't fitted with more sophisticated equipment on sale, which would have allowed investigators to gain a full GPS fix.

Communication between the aircraft and satellites is only possible when the plane is airborne and the final transmission however would have come towards the very end of flight MH370's endurance - officials in Kuala Lumpur said the plane was carrying sufficient fuel for 8 hours.

However through analysis of the position and view of the receiving geostationary Inmarsat satellite over the Indian Ocean has allowed officials to plot a “rough calculation” of the two “arcs” the plane may have taken, which has led to increased search emphasis on the Indian Ocean and wild speculation the aircraft may have travelled as far as Kazakhstan.

The revelations were reportedly welcomed by relatives of the passengers in China, who believe the development keeps alive the hope they may somehow be reunited with their loved ones. However the government in Beijing - which has 153 citizens on board the flight - urged Malaysia to continue providing it with “thorough and exact information” on the search, state news agency Xinhua said.

- The Independence

 Passengers and Crew of Missing Plane Scrutinized for Aviation Skills - Missing MH370: Crew and passengers under scrutiny 

Heavily guarded: Security personnel keeping a strict watch over the gated community in Laman Seri where Capt Zaharie resides. - Bernama

PETALING JAYA: As investigators search for clues about the person who turned off MH370’s communications system, police are looking into the crew and passengers again, this time paying close attention to those with aviation expertise.

Intelligence sources said investigations would include political and religious leanings, as well as travel patterns of those on board.

Minute details, such as hobbies and behavioural patterns, will also be put under the microscope as the investigations now focused on hijack.

Yesterday afternoon, a group of policemen conducted a search at Capt Zaharie Ahmad Shah’s house in Shah Alam.

Three policemen in an MPV were seen at the gated community in Section 13 at around 2.40pm. They left at 4.45pm.

It was unclear if they took away a flight simulator from the house.

Malaysia Airlines employees said a few pilots did have flight simulators in their homes but claimed that Capt Zaharie’s was one of the most impressive sets.

Capt Zaharie had previously posted on German online forum X-Sim.de that he had built a flight simulator himself.

“About a month ago I finished assembly of FSX and FS9 with 6 monitors,” read his message, which was signed off as Capt Zaharie Ahmad Shah Boeing 777 Malaysia Airlines in November 2012.

Checks revealed that FSX and FS9 are over-the-counter flight simulator games made by Microsoft. These can easily be bought online.

According to some family friends, Capt Zaharie’s family had moved out a few days ago after MH370 went missing.

According to MAS employees, a driver had told them that Capt Zaharie kept to himself while being driven to the KLIA for the flight.

He had studied aviation at the Philippine Airlines Aviation School in Pasay City in 1980. 

He joined Malaysia Airlines a year later.

The Penangite became a captain in the early 1990s and has 18,360 flying hours under his belt.

His colleagues described him as a jovial and professional “aviation geek” who collected remote-controlled miniature aircraft, light twin engine helicopters and amphibious aircraft.

Outside of aviation, he runs a YouTube channel dedicated to DIY projects, where he teaches viewers how to fix home appliances like air-conditioners.

The same group of policemen also conducted a search at MH370 co-pilot Fariq Abdul Hamid’s house a few hours after searching Capt Zaharie’s house.

Police arrived at Fariq’s house at Section 7 here around 8.05pm and left about an hour later.
It was unclear if anything was taken from the house.

- The Star/Asia News Network

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