Firefly, MAS, Khazanah, Finance Minister And Stuff

 

KL Oct 14 — Khazanah has option to channel funds to Firefly 

could become country’s national airline 

if MAS shut down

head of sovereign wealth fund quoted saying today

comments by Shahril Ridza Ridzuan are fund’s 1st public statements 

since Khazanah warned that MAS could be wound up if lessors did not agree 

Firefly operates 12 twin turboprops

fully owned subsidiary of Malaysia Aviation Group (MAG)

MAG letter to lessors Firefly “Plan B” scenario

Khazanah sole shareholder in MAG

Finance Minister said last week govt will not provide financial support to MAS and that any aid was for Khazanah to address. — Reuters

My comments :

I snipped the following from the Net which says Firefly is a subsidiary of MAS.

This other chart says they are all business 'portfolios' under MAG.

Well if they are subsidiaries they may be caught under cross-default clauses with lenders. 

If Firefly is a subsidiary of MAS then Firefly will be classed an asset of MAS. Creditors can legally go after all the assets of a parent company, including its subsidiaries. 

So if MAS cant fly, technically neither can the fire fly - if Firefly is a subsidiary of MAS.

But the whole structure comes under MAG - the Malaysian Aviation Group. 

Lessors can repossess the planes very quickly. But to wind up a company may take some time - its a Court process. 

Ok the Finance Minister said :

Finance Minister said last week govt will not provide financial support to MAS and that any aid was for Khazanah to address. — Reuters

Mr Finance Minister, Khazanah belongs to the government. It is the government's sovereign wealth fund. Khazanah funding is therefore government funding. And government funding is taxpayer funding. 

Meaning any type of funding by Khazanah is taxpayers funds.  So your statement that  "govt will not provide financial support to MAS and that any aid was for Khazanah to address"  is quite a non starter.

The views expressed are those of the author and do not necessarily reflect those of MMKtT.