Wednesday, December 31, 2014

The $2.25 billion dollar reason for the mysterious plane disappearances: Insurance Scam 101

1. Before the disasters, Malaysia Airlines had been in a deep financial hole. "In 2013, Malaysia Airlines was one of the worlds few unprofitable carriers." The carrier has lost money for more than three years, beset by high costs, a proliferation of unprofitable new flying in its network and two low-cost rivals at its home airport in Kuala Lumpur. You could assume there was a desperate need for a cash infusion. They arguably needed it more than any other airline in the world.
2. MA is owned partially by their national government. To be more specific, MA is owned by the parent company, Malaysian Airline Systems, which is owned by the government's sovereign wealth fund Khazanah Nasional. The MA government search response which has been odd, many conflicting news reports and narratives and the governments response almost seems detrimental. You could assume government agents had a financial motive to collaborate in the insurance scam.
3.Here's the kicker...Malasian Airlines had a broad liability policy through Allianz of Germany. The limits were 'higher than normal' and went up to $3.25 billion for each crash. Willis Group Holdings was the broker for the policy. Willis Group Holdings was also the broker for the policy that paid out 'Lucky' Larry Silverstein on WTC!

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