Criticism of Malaysian authorities' management of information Public communication from Malaysian officials regarding the loss of Flight 370 was initially beset with confusion. The Malaysian government and the airline released imprecise, incomplete, and occasionally inaccurate information, with civilian officials sometimes contradicting military leaders. The campaign, which ended on 8 August 2014, raised US$100,516 from 1,007 contributors.
Malaysia Airlines A month after the disappearance, Malaysia Airlines' chief executive Ahmad Jauhari Yahya acknowledged that ticket sales had declined but failed to provide specific details. This may have partially resulted from the suspension of the airline's advertising campaigns following the disappearance. Ahmad stated in an interview with
The Wall Street Journal that the airline's "primary focus...is that we do take care of the families in terms of their emotional needs and also their financial needs. It is important that we provide answers for them. It is important that the world has answers, as well." In further remarks, Ahmad said he was not sure when the airline could start repairing its image, but that the airline was adequately insured to cover the financial loss stemming from Flight 370's disappearance. In China, where the majority of passengers were from, bookings on Malaysia Airlines were down 60% in March. Malaysia Airlines
retired the MH370
flight number and replaced it with MH318 (Flight 318) beginning 14 March 2014. This follows a common practice among airlines to redesignate flights after notorious accidents. As of September 2025, Malaysia Airlines still operates the Kuala Lumpur–Beijing route as MH318, though the flight now lands into
Beijing Daxing instead of Beijing Capital. Malaysia Airlines was given US$110 million (~$ in ) from insurers in March 2014 to cover initial payments to passengers' families and the search effort. In May, remarks from lead reinsurer of the flight,
Allianz, indicated the insured market loss on Flight 370, including the search, was about US$350 million. In 2017, Malaysia Airlines announced that they are the first airline to sign up for a new service that would track its airplanes anywhere in the world using orbiting satellites.
Financial troubles At the time of Flight 370's disappearance, Malaysia Airlines was struggling to cut costs to compete with a wave of new, low-cost carriers in the region. In the previous three years, Malaysia Airlines had booked losses of:
RM1.17 billion (US$356 million) in 2013, RM433 million in 2012, and RM2.5 billion in 2011. Industry analysts expected Malaysia Airlines to lose further market share and face a challenging environment to stand out from competitors while addressing its financial plight. The loss of Flight 17 in July greatly exacerbated Malaysia Airline's financial problems. The combined effect on consumer confidence of the loss of Flight 370 and Flight 17, and the airline's poor financial performance, led
Khazanah Nasional—the majority shareholder (69.37%) and a Malaysian state-run investment arm—to announce on 8 August its plan to purchase the remainder of the airline, thereby renationalising it. Malaysia Airlines
renationalised on 1 September 2015.
Compensation for passengers' next of kin Lack of evidence in determining the cause of Flight 370's disappearance, as well as the absence of any physical confirmation that the airplane crashed, raises many issues regarding responsibility for the accident and the payments made by insurance agencies. Under the
Montreal Convention, it is the carrier's responsibility to prove lack of fault in an accident and each passenger's
next of kin are automatically entitled, regardless of fault, to a payment of approximately US$175,000 from the airline's insurance company—amounting to a total of almost US$40 million for the 227 passengers on board. Despite the announcement that the flight ended in the southern Indian Ocean, it was not until 29 January 2015 that the Malaysian government officially declared Flight 370 an accident with no survivors, a move that would allow compensation claims to be made. The first civil case relating to the disappearance was filed in October 2014—even before Flight 370 had been declared an accident—on behalf of two Malaysian boys whose father was a passenger; they were claiming for negligence in failing to contact the aircraft soon after it was lost and for breach of contract for failing to bring the passenger to his destination. Additional civil proceedings against Malaysia Airlines were filed in China and Malaysia. Soon after the disappearance of Flight 370, Malaysia Airlines offered
ex gratia condolence payments to families of the passengers. In China, the families were offered ¥31,000 (approx. US$5,000) "comfort money", (which later occurred in January 2015). The Malaysian military became aware of the unidentified aircraft only after reviewing radar recordings several hours after the flight's disappearance. Opposition leader
Anwar Ibrahim criticised the Malaysian government regarding its response to Flight 370's disappearance and the military's response when Flight 370 turned back over the Malay Peninsula; he called for an international committee to take charge of the investigation "to save the image of the country and to save the country." According to former air force pilot major Ahmad Zaidi of
RMAF Butterworth, no pilot stays on the base during the night, so the aircraft could not have been intercepted. The response to the crisis and lack of transparency in the response brought attention to the state of media in Malaysia. After decades of tight media control, during which government officials were accustomed to passing over issues without scrutiny or accountability, Malaysia was suddenly thrust into the spotlight of the global media and unable to adjust to demands for transparency.
March 2020 On 8 March 2020, six years after the disappearance, two memorial events were held to mark the anniversary. Families of MH370 passengers called for a new search for the flight in a bid to seek closure. Malaysia's former Transport Minister Anthony Loke had attended one of the events, expressing regret at being unable to table the compensation documents at the Cabinet level as per his original intent. The families hoped that the new Transport Minister
Wee Ka Siong could expedite the compensation matters. Malaysia's transport ministry secretary-general, Datuk Isham Ishak, stated that he had already submitted a request to meet the Prime Minister (
Muhyiddin Yassin) the following week of 15 to 22 March so that he could present the paper on compensation for the families of MH370 victims, and that the ministry would also continue to seek support from the new government to resume the search for the missing aircraft.
China Chinese Deputy Foreign Minister
Xie Hangsheng reacted sceptically to the conclusion by the Malaysian government that the aircraft had gone down with no survivors, demanding on 24 March 2014 "all the relevant information and evidence about the satellite data analysis", and said that the Malaysian government must "finish all the work including search and rescue."
Boycotts Some Chinese citizens
boycotted all things Malaysian, including holidays and singers, in protest of Malaysia's handling of the Flight 370 investigation. Bookings on Malaysia Airlines from China, where the majority of passengers were from, were down 60% in March. and several large Chinese travel agencies reported a 50% drop in tourists compared to the same period the year before. China was the third-largest source of visitors to Malaysia prior to Flight 370's disappearance, accounting for 1.79 million tourists in 2013. One market analyst predicted a 20–40% drop in Chinese tourists to Malaysia, resulting in a loss of 4–8 billion yuan (RM2.1–4.2 billion; US$0.65–1.3 billion). The boycotts were largely led or supported by celebrities. Film star
Chen Kun posted a message to
Weibo—where he had 70 million followers—stating that he would be boycotting Malaysia until its government told the truth. The post was shared over 70,000 times and drew over 30,000 comments. More than 337,000 people retweeted a tweet from TV host
Meng Fei which said that he would join the boycott.
Aircraft tracking The
International Air Transport Association (IATA)—an industry trade organisation representing more than 240 airlines (accounting for 84% of global air traffic)—and the ICAO began working on implementing new measures to track aircraft in flight in real time. The task force was expected to provide a report to the ICAO on 30 September 2014, but announced on that date that the report would be delayed, citing the need for further clarification on some issues. In December 2014, the IATA task force recommended that, within 12 months, airlines track commercial aircraft in no longer than 15-minute intervals. The IATA itself did not support the deadline, which it believed could not be met by all airlines, but the proposed standard had the support of the ICAO. Although the ICAO can set standards, it has no legal authority, and such standards must be adopted by member states. In 2016, the ICAO adopted a standard that, by November 2018, all aircraft over open ocean report their position every 15 minutes. In May 2014, Inmarsat said that it would offer its tracking service for free to all aircraft equipped with an Inmarsat satellite connection (which includes the vast majority of commercial airliners). Inmarsat also changed the time period for handshakes with its terminals from one hour to 15 minutes.
Transponders After the
terrorist attacks of 11 September 2001, calls were made for
transponders to become automated rather than manually operated; no changes were made because aviation experts preferred flexible control, in case of malfunctions or electrical emergencies. The maximum distance from the ULBs at which the signal can be detected is normally , or under favourable conditions. Given these shortcomings, and the importance of the data stored on flight recorders, Flight 370 has brought to attention new technologies that enable
data streaming to the ground. A call to increase the battery life of ULBs was made following the unsuccessful initial search in 2009 for the flight recorders on
Air France Flight 447, which were not located until 2011. A formal recommendation that the ULB design be upgraded to offer a longer battery life, or to make the recorders ejectable, had been included in the final report of the board of inquiry into the loss of
South African Airways Flight 295 over the Indian Ocean in 1987, but it was not until 2014 that the
ICAO made such a recommendation, with implementation required by 2018. The agency has also proposed that a new underwater locator beacon with a greater range of transmission should be fitted to aircraft that fly over oceans. == In popular culture ==