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KUALA LUMPUR, October 14 – Malaysia’s Khazanah Nasional has the option to channel funds to low-cost carrier Firefly, which could become the country’s national carrier if Malaysia Airlines is closed, the sovereign wealth fund director said today.
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 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 which often suffers losses, Khazanah will have to divest its holdings in other strategic assets or increase debt,” Shahril said as well.
Finance Minister Datuk Seri Tengku Abdul Aziz said last week that the government will not provide financial support to Malaysia Airlines and that Khazanah must address any assistance. – Reuters
