PUTRAJAYA will consider all proposals for Malaysia Airlines Bhd (MAB), even if there is one from Singapore Airlines (SIA), as long as the flag carrier’s national identity is preserved, said Prime Minister Dr Mahathir Mohamad.

Suitors and groups of investors have lined up to rescue the ailing national carrier which has been struggling to return to the black despite several bailout attempts by the government.

“We are studying all proposals; some are concrete proposals, some are verbal proposals – we won’t ignore anyone. At this moment, if it involves SIA, we will also include it,” the prime minister said when asked if Putrajaya would consider a proposal from SIA. 

MAB and SIA recently entered into a memorandum of understanding to widen cooperation, but no proposal has come from the republic on taking over MAB.

Dr Mahathir said the main priority is to preserve the airline’s identity as the flag carrier, adding that Putrajaya will ensure that any such proposals will not include any MAB staff being laid off.

He reiterated that the government does not want to continue bailing out the airline.

MAB was subjected to a 12-point turnaround plan by its sole shareholder Khazanah Nasional Bhd in 2014. The sovereign wealth fund also injected RM6 billion to bail out the bleeding airline.

Prior to the 2014 turnaround plan, the carrier received RM17.4 billion in several bailout attempts.

“All things will be evaluated to find the best solution. We have changed the management many times.

“Everyone promised us they will turn around the airline many times, but in the end, they all failed. 

“This time around, we don’t want to give without really studying the capability of the people who may want to take over the airline,” the prime minister said when asked whether the government will relinquish its strategic stake in MAB.

Putrajaya is likely to maintain certain control over the airline either as shareholder or as the government, even if it is sold, said Dr Mahathir, who is chairman of Khazanah.

The national carrier’s fate still hangs in the balance as the government has yet to make a decision on its future. Considerations include selling it off or rescuing it.

Dr Mahathir said there is no set time frame on when a decision can be expected. – July 10, 2019.