Malaysian Airline System to undergo complete overhaul

10 August 2014 (Last Updated August 10th, 2014 18:30)

The Government of Malaysia's strategic investment fund Khazanah Nasional Berhad has proposed the de-listing of Malaysian Airline System (MAS) with the aim of reviving the national airliner after it faced two disasters this year.

The Government of Malaysia's strategic investment fund Khazanah Nasional Berhad has proposed the de-listing of Malaysian Airline System (MAS) with the aim of reviving the national airliner after it faced two disasters this year.

Following the crash of flight MH17 in Ukraine and the disappearance of flight MH370 this year, ticket sales for the airlines had decreased substantially. The proposal comes in the wake of these two incidents, in an attempt to rescue the company.

Khazanah currently owns 69.37% of the airlines' shares. The overhaul will allow the fund to become the sole ordinary shareholder of MAS, which would lead to a de-listing of MAS.

"In this regard, today's proposal for de-listing represents the first stage of the restructuring scheme."

Khazanah stated that the proposed restructuring would require all parties to work closely together to undertake a complete overhaul of the national carrier on all relevant aspects such as the airline's operations, business model, finances, human capital and regulatory environment.

The Malaysian sovereign wealth fund said in a statement: "In this regard, today's proposal for de-listing represents the first stage of the restructuring scheme.

Khazanah is also in the final stages of completing the overall restructuring proposal, and upon due process and approvals from the relevant authorities, regulators and the special shareholder, the Minister of Finance, we envisage that additional detailed plans will be announced by the end of this month."