Putrajaya mulling options over Malaysia Airlines, says Dr Mahathir

Timothy Achariam Diyana Ibrahim Timothy Achariam, Diyana Ibrahim Updated 5 years ago · Published on 12 Mar 2019 12:14PM · 3 Comments

Prime Minister Dr Mahathir Mohamad says that the government will study 'as to whether we should shut (Malaysia Airlines) down, sell it off, or refinance it'. – The Malaysian Insight pic by Kamal Ariffin, March 12, 2019.

PUTRAJAYA will look at the options available to it over the future of Malaysia Airlines, said Prime Minister Dr Mahathir Mohamad, as the national carrier continues to bleed financially.

He said that the government will study these options, which include shutting the national carrier down.

“Shutting the national airline down is a serious matter. We will study as to whether we should shut it down, sell it off, or refinance it,” he said at a press conference in Parliament today when asked if the carrier should be shut down.  

In a report by an English-language daily last week, aviation analysts suggested that MAS’ days as a national carrier may be numbered as it has failed to meet its three-year target to be profitable, but is instead bleeding since it was taken private in 2014.

They said that the best deal for the airline is to shut down its operations, sell it to interested parties, or spin off its business divisions.

They also said that a loss-making business cannot continue indefinitely.  

From its delisting from Bursa Malaysia from 2015 to 2017, MAS had registered a loss of RM2.3 billion due to the ringgit’s weakness and higher jet fuel costs.

Khazanah last week announced that half of its total impairment cost of RM7.3 billion in 2018 was due to the carrier.

The sovereign wealth fund has asked MAB to produce a new strategic plan. – March 12, 2019.

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Comments

  • Finally something practical have been put to the table as public funds is better to be put else where. MAS can't say the government doesn't care about it as the records are all there for us to see that MAS is a black hole doesn't matter how much was pour in, its sucks like nobody business. Selling it off the best option, cut off our losses and gain back a little whatever we can salvage out of it and there after MAS is a private entity to fight it out with the rest of the players. There is absolutely no point in having a national carrier which needs to be baby sit all the time and costly. National pride is totally not at a lost when MAS is being sell off. We look forward for MAS taken off our backs for good.

    Posted 5 years ago by Teruna Kelana · Reply

  • No more bail out. Either sell it, if there is a genuine buyer, but not in the mould of Tajuddin Ramli, sell it. Otherwise just shut it down and forget about national pride. We still have AirAsia.

    Posted 5 years ago by Mike Mok · Reply

  • When MAS is sold off it will flourish!!! It becomes private and public does not have to be under Malaysian Government. From there it does not have to operate and pander to the demands of "bangsa dan agama" which have curtailed MAS in being successful.

    Posted 5 years ago by Lee Lee · Reply