Malaysia Airlines has been bleeding red ink in recent years and the MH370 tragedy has made the airline's problems even worse. The airline has reported losses in the past three years despite operational adjustments and cost cuts.

Insiders say the disappearance of flight MH370 could be a dagger in the heart for the airline. The airline's liabilities for flight MH370 could top about 40 million dollars.

There was serious talk before flight MH370 disappeared that the airline might enter bankruptcy because the Malaysian government doesn't want to support the losses.