[ad_1]
KUALA LUMPUR: Khazanah Nasional Bhd has the option of channeling funds to low-cost carrier Firefly, which could become the country’s national carrier if Malaysia Airlines is closed, according to the sovereign wealth fund director.
Datuk Shahril Ridza Ridzuan’s (photo) comments to Berita Harian yesterday are the fund’s first public statements since it emerged that Malaysia Airlines parent company warned that the flagship airline could be liquidated if lessors did not accept deep discounts.
Firefly, which operates a fleet of 12 twin turboprops, primarily within the country, is a wholly owned subsidiary of Malaysia Aviation Group (MAG).
According to a MAG letter sent to the lessors and seen by Reuters, Firefly would obtain narrow-body aircraft and subsequently wide-body aircraft from the market in a “Plan B” scenario. Khazanah, MAG’s sole shareholder, will discuss next steps when the outcome of the restructuring talks becomes clearer, the newspaper reported.
“If Khazanah continues to finance Malaysia Airlines, which does not have a strong financial position and often suffers losses, Khazanah will have to either divest its interests in other strategic assets or increase debt,” Shahril said as well.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said last week that the government would not provide financial support to Malaysia Airlines and that Khazanah should address any assistance. – Reuters
[ad_2]
