After 2 disasters, Malaysia Airlines faces overhaul
Malaysia Airlines In ‘Complete Overhaul’ Plan
-
Associated Press Photos – In this Nov. 27, 2012 photo, Malaysia Airlines’ Boeing 737 passenger plane, rear, prepares to take off as other Malaysia Airlines planes park at Kuala Lumpur International Airport …more in Sepang, Malaysia. Malaysia Airlines said Wednesday, Aug. 21, 2013 it is on track to become profitable by the end of next year because its business turnaround plan has gained momentum. (AP Photo/Vincent Thian) less
The complete takeover would cost 1.38bn ringgit (£255m). Shares were suspended in Kuala Lumpur ahead of the announcement.
“The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier,” Khazanah said in a statement.
“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.”
Before this year’s disasters, the carrier’s financial performance was among the worst in the industry, putting a question mark over its future.
Some industry experts recently voiced concern of its ability to survive without a major cash injection from the Malaysian government.
Branding specialists have said Malaysia Airlines must take dramatic steps such as replacing its senior management and a name change.
As a state-owned flag carrier, the airline must fly unprofitable domestic routes.
Its workforce has a strong union presence that has resisted operational changes, amid the rise of low cost regional rivals.
Khazanah said the plan requires approvals from regulators and Malaysia’s finance minister.
Fax: +44 (0) 871 698 1971Email: info@shirshobindu.com (Admin) news@shirshobindu.com (Newsroom)