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KUALA LUMPUR (Oct. 14): 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 shut down, the sovereign wealth fund director said on Wednesday.
Datuk Shahril Ridza Ridzuan’s comments to the newspaper Daily News They 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 domestically, is currently a wholly owned subsidiary of Malaysia Aviation Group (MAG). According to a letter from MAG sent to landlords and seen by Reuters, Firefly would get 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 which often suffers losses, Khazanah will have to divest its holdings 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 will not provide financial support to Malaysia Airlines and that Khazanah must address any assistance.
Read also:
Malaysia Airlines survival in doubt as political support weakens
Lessors reject Malaysia Airlines restructuring plan
Malaysia Airlines to seek significant cut from creditors
Up to Khazanah to solve Malaysia Airlines dilemma, says Tengku Zafrul
Khazanah to stop financing Malaysia Airlines if landlord negotiations fail: letter
Malaysia Airlines group is short on cash, seeking deep discounts from lessors
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