Malaysia Airlines facing sale or shutdown
The Malaysian government is considering whether to shut, sell or – as one of the less likely options – refinance national carrier Malaysia Airlines, Prime Minister Mahathir Mohamad said.
The government was studying strategies for the airline, and a decision should be made “soon”, Mahathir said on March 12, when asked about analysts’ suggestions the airline be shut down or spun off.
“It is a very serious matter to shut down the airline,” Mahathir told a news conference at parliament.
“We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it off or we should refinance it. All these things are open for the government to decide.”
Malaysia Airlines has sought to turn itself around since being taken private by sovereign wealth fund Khazanah Nasional in 2014. That followed tragic incidents involving one of its planes disappearing over the Indian Ocean and another being shot down over Ukraine. Khazanah is demanding the carrier come up with a strategic plan to compete in the industry, after pouring in six billion ringgit ($1.5 billion) into the airline to make it profitable.
Khazanah said the government needed to decide on its investment in, and level of support for, the struggling airline. The fund also said that it was waiting for the airline to present a review of its business strategy.
The Malaysian government is considering whether to shut, sell or - as one of the less likely options - refinance national carrier Malaysia Airlines, Prime Minister Mahathir Mohamad said. The government was studying strategies for the airline, and a decision should be made "soon", Mahathir said on March 12, when asked about analysts' suggestions the airline be shut down or spun off. "It is a very serious matter to shut down the airline," Mahathir told a news conference at parliament. "We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it...
The Malaysian government is considering whether to shut, sell or – as one of the less likely options – refinance national carrier Malaysia Airlines, Prime Minister Mahathir Mohamad said.
The government was studying strategies for the airline, and a decision should be made “soon”, Mahathir said on March 12, when asked about analysts’ suggestions the airline be shut down or spun off.
“It is a very serious matter to shut down the airline,” Mahathir told a news conference at parliament.
“We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it off or we should refinance it. All these things are open for the government to decide.”
Malaysia Airlines has sought to turn itself around since being taken private by sovereign wealth fund Khazanah Nasional in 2014. That followed tragic incidents involving one of its planes disappearing over the Indian Ocean and another being shot down over Ukraine. Khazanah is demanding the carrier come up with a strategic plan to compete in the industry, after pouring in six billion ringgit ($1.5 billion) into the airline to make it profitable.
Khazanah said the government needed to decide on its investment in, and level of support for, the struggling airline. The fund also said that it was waiting for the airline to present a review of its business strategy.
