KHAZANAH Nasional Bhd had received nine proposals for Malaysia Airlines Bhd (MAB), of which four were shortlisted, the sovereign wealth fund said today.

Khazanah is looking at several options to save the national carrier.

Last year, it launched a process to evaluate several potential partners for the national carrier which is financially bleeding.

“For 2020, Khazanah will continue to work closely with the government and MAB to further review the proposals and finalise a decision on the appropriate strategic option moving forward,” Khazanah said in a statement on its financial performance for 2019.

Previous reports named Japan Airlines Co Ltd and Air France-KLM as some of the potential suitors along with low-cost carrier AirAsia Group Bhd. 

According to records filed with the Companies Commission of Malaysia (SSM) sighted by The Malaysian Insight, MAB reported a net loss of RM791.70 million for the financial year-ended December 31, 2018 against RM812.11 million in the previous year. 

Revenue improved marginally by 0.8% to RM8.73 billion from RM8.67 billion. 

Based on Khazanah’s 12-point turnaround plan, the airline was supposed to have returned to the black last year. 

The fund previously committed to inject RM6 billion to save the airline. 

Khazanah managing director Shahril Ridza Ridzuan previously told Parliament’s Public Accounts Committee (PAC) that the national carrier continues trending in the red partly because of the overall conditions in the aviation sector, especially in Malaysia.

“The sector is facing a problem of oversupply, whereby in Malaysia there are four airlines – MAS (Malaysia Airlines), AirAsia, AirAsia X and Malindo – for a market of 30 million that more or less translates into 1.7 seats per passenger,” the PAC report quoted him as saying.

In the past five years, Khazanah has injected a “huge sum” into the MAB holding company, Malaysia Aviation Group Bhd (MAG), in line with the turnaround plan.

However, the move has failed to yield the desired result.

Shahril said if MAB were to continue operations as is, then a capital investment of about RM1 billion a year would be required.

As for PLUS Malaysia Bhd, Khazanah said it has successfully achieved a resolution on the PLUS Malaysia (“PLUS”) toll restructuring, as the rates were reduced by 18%. 

This has also resulted in a RM42billion savings for the government and the highway concessionaire’s shareholders Khazanah and the Employees Provident Fund over the new 30-year concession period which ends in 2058.  

“This restructuring is now at the stage of discussions with stakeholders to put into place the necessary amendments to existing agreements,” it said. 

Putrajaya previously considered selling Khazanah’s stake in PLUS. – March 2, 2020.