SHUTTING DOWN MAS UNLIKELY – BUT SELLING OR REFINANCING IT MORE LIKELY? MAHATHIR SAYS ALL 3 OPTIONS ARE BEING STUDIED – BUT ‘SHUTTING DOWN THE NATIONAL AIRLINE IS A SERIOUS MATTER’

PUTRAJAYA will look at the options available to it over the future of Malaysia Airlines, said Prime Minister Dr Mahathir Mohamad, as the national carrier continues to bleed financially.

He said that the government will study these options, which include shutting the national carrier down.

“Shutting the national airline down is a serious matter. We will study as to whether we should shut it down, sell it off, or refinance it,” he said at a press conference in Parliament today when asked if the carrier should be shut down.

In a report by an English-language daily last week, aviation analysts suggested that MAS’ days as a national carrier may be numbered as it has failed to meet its three-year target to be profitable, but is instead bleeding since it was taken private in 2014.

They said that the best deal for the airline is to shut down its operations, sell it to interested parties, or spin off its business divisions.

They also said that a loss-making business cannot continue indefinitely.

From its delisting from Bursa Malaysia from 2015 to 2017, MAS had registered a loss of RM2.3 billion due to the ringgit’s weakness and higher jet fuel costs.

Khazanah last week announced that half of its total impairment cost of RM7.3 billion in 2018 was due to the carrier.

The sovereign wealth fund has asked MAB to produce a new strategic plan.

– THE MALAYSIAN INSIGHT