Virus crisis puts merger of Malaysia Airlines and AirAsia back on the cards

Airasia Could Take Over Malaysia Airlines: Reports

The idea of a merger of ailing Malaysian national carrier Malaysia Airlines and budget airline AirAsia is back, this time as an option to secure both carrier’s survival as the industry gets battered like never before by the coronavirus crisis, fleets got grounded and revenue evaporated.

Mohamed Azmin Ali, Malaysia’s minister of international trade and industry, said discussions would soon take place on various options to help out the country’s airline industry, one of which is the idea of the merger between Malaysia’s two largest carriers.

A potential merger was already considered in July last year when it became clear that Malaysia Airlines would likely not be able to survive on its own, even before the coronavirus pandemic struck, and discussion came up to put it on sale to potential investors or strategic industry partners.

“That discussion took place last year, even before this pandemic came. But we need to continue the discussion,” Azmin told Reuters.

“We need to see how best we can save those airlines, and it’s not going to be a very simple answer. Things are very bad, the aircraft are not flying. We need to sit down and discuss how to address these issues,” he added.

Malaysia Airlines still not recovered from tragedies

Malaysian Airlines is still struggling to recover from two tragedies in 2014 – the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.

Sources have said AirAsia and Japan Airlines had earlier shown interest in buying a stake in Malaysia Airlines. Privately held Malaysian group Golden Skies Ventures said this month it had made a $2.5-billion offer to fully take over the holding company of the airline, according to Reuters.

AirAsia said it had currently no incoming revenue and 96 per cent of its fleet was grounded, having suspended most of its flights since March while its long-haul arm, AirAsia X, had also parked most of its aircraft at its Kuala Lumpur hub.



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The idea of a merger of ailing Malaysian national carrier Malaysia Airlines and budget airline AirAsia is back, this time as an option to secure both carrier's survival as the industry gets battered like never before by the coronavirus crisis, fleets got grounded and revenue evaporated. Mohamed Azmin Ali, Malaysia's minister of international trade and industry, said discussions would soon take place on various options to help out the country’s airline industry, one of which is the idea of the merger between Malaysia's two largest carriers. A potential merger was already considered in July last year when it became clear...

Airasia Could Take Over Malaysia Airlines: Reports

The idea of a merger of ailing Malaysian national carrier Malaysia Airlines and budget airline AirAsia is back, this time as an option to secure both carrier’s survival as the industry gets battered like never before by the coronavirus crisis, fleets got grounded and revenue evaporated.

Mohamed Azmin Ali, Malaysia’s minister of international trade and industry, said discussions would soon take place on various options to help out the country’s airline industry, one of which is the idea of the merger between Malaysia’s two largest carriers.

A potential merger was already considered in July last year when it became clear that Malaysia Airlines would likely not be able to survive on its own, even before the coronavirus pandemic struck, and discussion came up to put it on sale to potential investors or strategic industry partners.

“That discussion took place last year, even before this pandemic came. But we need to continue the discussion,” Azmin told Reuters.

“We need to see how best we can save those airlines, and it’s not going to be a very simple answer. Things are very bad, the aircraft are not flying. We need to sit down and discuss how to address these issues,” he added.

Malaysia Airlines still not recovered from tragedies

Malaysian Airlines is still struggling to recover from two tragedies in 2014 – the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.

Sources have said AirAsia and Japan Airlines had earlier shown interest in buying a stake in Malaysia Airlines. Privately held Malaysian group Golden Skies Ventures said this month it had made a $2.5-billion offer to fully take over the holding company of the airline, according to Reuters.

AirAsia said it had currently no incoming revenue and 96 per cent of its fleet was grounded, having suspended most of its flights since March while its long-haul arm, AirAsia X, had also parked most of its aircraft at its Kuala Lumpur hub.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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