MAS faces privatisation ahead of major restructure

MAS faces privatisation ahead of major restructure
By admin


Malaysia Airlines will consult its shareholders following a proposal for a state-run investment fund to take full ownership of the troubled carrier, with it to be delisted in the first stage of a restructuring plan.

The Malaysian Government’s strategic investment fund Khazanah on Friday lodged a formal request to the airline’s board to “undertake a selective capital reduction and repayment exercise” of MAS shares. Shareholders will receive RM0.27 per share, with the sum representing a 12.5% premium on Thursday’s closing price.

Completion of the proposed repayment would see Khazanah become the airline’s sole shareholder, with it to be subsequently delisted.

According to the CAPA Centre for Aviation, the airline has lost US$1.2 billion in the past three years, and a further US$140 million in the first quarter of this year alone. The July shooting down of MH17 and the March disappearance of MH370 are expected to inflict further damage to its financials.

In June, Khazanah revealed it was undertaking a comprehensive review of MAS with the aim of devising a restructuring scheme, with today’s proposal representing the plan's first stage.

“We reiterate that the proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier on all relevant aspects of, inter alia, the airline’s operations, business model, finances, human capital and regulatory environment,” a Khazanah statement said.

“Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity.”

Additional details of the restructuring plan are expected to be revealed by the end of the month.

MAS will table the proposal to shareholders at an extraordinary general meeting to be scheduled at a later date.

"Malaysia Airlines will continue to operate all our current flights, schedules and reservations," a statement said. "Our focus remains on delivering the world class customer service that we are known for around the world."

Meanwhile, the airline confirmed it is working to support the families of those onboard flight MH17 through its provision of "caregivers", financial assistance to US$5,000 and the initiation of an advance compensation payment process.

Latest News

  • Hotels

Minor Hotels announces a new luxury Anantara on Bali’s Seseh Beach

Minor Hotels has signed an agreement to manage a new-build Anantara resort and branded residences on Seseh Beach in Bali, opening in 2027. The news Anantara Dragon Seseh Bali Resort will be the first luxury beachfront resort on Seseh Beach and the third Anantara Hotels & Resorts property in Bali. The Anantara Dragon Seseh Bali […]

  • Aviation

Solomon Airlines fills Air Vanuatu gap with flights from Port Vila to Auckland

Solomon Islands’ national carrier will commence direct flights between Port Vila and Auckland from 27 May, using Solomon Airlines aircraft to continue air services linking Vanuatu and New Zealand. Solomon Islands officials together with the Vanuatu Government has worked closely with relevant New Zealand authorities to continue interim flights servicing Auckland from Port Vila. This included […]

  • Aviation

Board Air Canada in Sydney’s CBD via a sleek Light Rail

Visitors flocking to Vivid Sydney will glide through the CBD in the newest addition to the Air Canada fleet – a sleek Light Rail tram wrapped in the airline’s unique livery. The Air Canada-themed tram is part of a new marketing campaign designed to put Air Canada in lights during the Vivid Sydney festival (25 […]

  • Cruise
  • News

Carnival Splendor to the rescue of Aussies and Kiwis left stranded in Vanuatu

Carnival Cruise Line’s Carnival Splendor has come to the aid of a group left stranded in Vanuatu, following the collapse of Air Vanuatu. The group, eight Australians and one New Zealander, were visiting the island of Santo when Air Vanuatu cancelled all flights, leaving them without a way home. Carnival Cruise Line responded by offering […]

  • Hotels

QT Singapore set to open in heritage Eastern Extension Telegraph building

Bookings open today for QT Singapore, in the historic former Eastern Extension Telegraph building along Robinson Road, the first property from QT Hotels & Resorts to open outside Australian and New Zealand. Previously Accor’s So Singapore, then the Hotel Telegraph, QT Singapore will officially launch on September 16 and will feature 134 rooms, ranging in […]

  • Hotels
  • News

Minor Hotels’ Anantara group reimagines the brand as its portfolio surpasses 50 properties

Anantara Hotels & Resorts is marking a significant milestone with a reimagined brand identity as recent openings across Europe, Middle East and Asia have propelled the brand portfolio beyond 50 properties. Part of the Minor Hotels group, the Anantara visual refresh takes an elegant, pared-back approach that enables each hotel’s unique character to shine – […]