Khazanah mulling RM5 billion cash injection for Malaysia Airlines

Updated 3 years ago · Published on 11 Jun 2020 2:04PM · 3 Comments

Since the onset of the Covid-19 pandemic, Malaysia Airlines has cancelled flights, deferred non-critical spending and cut costs. – The Malaysian Insight file pic, June 11, 2020.

KHAZANAH Nasional Bhd is mulling fresh funds of up to RM5 billion to help Malaysia Airlines Bhd (MAB) mitigate the impacts of the Covid-19 pandemic, Bloomberg reported.

Quoting sources familiar with the matter, the report said MAB would use the fresh capital to resume suspended operations.

A source also said on condition of anonymity that the cash infusion could start in the coming weeks if it is approved.

Meanwhile, Malaysia Airlines said that discussions with Khazanah were ongoing, adding that the shareholder is supportive of the airline’s efforts to cope with the impacts of the pandemic.

The sovereign wealth fund has not committed any specific amount of funds to the carrier.

Khazanah has also declined to comment on the matter, the report said.

Since the onset of the Covid-19 pandemic, Malaysia Airlines has cancelled flights, deferred non-critical spending and cut costs.

Putrajaya had also explored the possibility of bailing out its domestic airlines, sources told Bloomberg News.

Khazanah has also told MAB to devise a strategic turnaround plan after it failed to meet two profitability targets. Morgan Stanley was hired by Khazanah to explore strategic options for the airline.

Khazanah has previously pledged RM6 billion as part of a 12-point turnaround plan, which included MAS being delisted from Bursa Malaysia and its operations, assets and liabilities transferred to a new company, now known as MAB. – June 11, 2020.

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Comments

  • What the hell is going on with this govt? Bloomberg news broadcasted buy local news agencies have no idea about this big expenditures? How can we trust this black box govt?

    Posted 3 years ago by James Wong · Reply

  • Pls dont use Tax Payer money to Bail MAS Use Politician money to bail MAS

    Posted 3 years ago by Lucky Boy · Reply

  • Just let it die a natural death!!!

    Posted 3 years ago by Jules Fong · Reply