Shuttering Malaysia Airlines ‘wrong move’, says CEO

Updated 4 years ago · Published on 3 Jun 2019 10:42AM · 3 Comments

Malaysia Airlines Bhd CEO Izham Ismail says closing down the national carrier would be a 'wrong move' as many of its downstream businesses are successful and up to 400,000 jobs are on the line if it closes. – The Malaysian Insight file pic, June 3, 2019.

MALAYSIA Airlines CEO Izham Ismail has criticised suggestions to shut down the national carrier, saying while it may not be profitable the many downstream companies that rely on it are “GDP positive”.

“Shutting down Malaysia Airlines would be a wrong move. This is my personal opinion, not the views of the organisation, the shareholders or its board of directors,” he was quoted as saying by The Malay Mail.

Izham told Malaysian press members in Seoul, South Korea that he welcomed investors to help with the national carrier’s turnaround.

“Malaysia Airlines might not be profitable, but organisations, stakeholders, companies that give services to Malaysia Airlines are profitable,” he said yesterday during the 75th International Air Transport Association (IATA) annual general meeting.

“That itself is a GDP positive.”

In addition to the 13,500 staff Malaysia Airlines employs, Izham said up to 400,000 people who would be affected if the airline were to shut down.

“Can you shut down Malaysia Airlines overnight? It will cost a lot

“Do we sell 100% of shares to them? Because that’s equivalent to shutting down Malaysia Airlines. Are you brave enough to take on the liability of Malaysia Airlines? You’d be so stupid,” he said.

Prime Minister Dr Mahathir Mohamad said Putrajaya is considering shuttering Malaysia Airlines, among other options that include selling or refinancing the loss-making airline.

“We have a problem with MAS,” he said in a press conference last month in conjunction with the first year anniversary of May 9 election.

“The last government gave it RM6 billion, they sacked 6,000 people, then they don’t fly to 60% of the destinations. There was no gain in what they tried to do,” he said.

Dr Mahathir said the government was still searching for the best solution for MAS. – June 3, 2019.

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Comments

  • You can talk big bcos it is not your own money but the rakyats money. Why dont you tru surviving on your own like AA.

    Posted 4 years ago by Besaman Mucho · Reply

  • Dont shut down?? So what do you want the government to do?? Another bail out in the billions?? We dont have that kind of money anymore. We need to bite the bullet now either to sell the airline or do a JV with another airline. These are our only options.

    Posted 4 years ago by Elyse Gim · Reply

  • How many times do u want to BAIL the National Carrier. Let a Non Muslim to run the National Carrier sure BERKAT bcoz we use hard earn money not govt money not even our TAX money

    Posted 4 years ago by Mindy Singh · Reply