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KUALA LUMPUR: Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has reiterated that the government will not inject more funds into Malaysia Airlines Bhd (MAB) and that it is solely up to its sole owner, Khazanah Nasional Bhd, to solve it.
“We have constantly said that this is the issue that Khazanah has to get involved in.
“The Ministry of Finance (MoF) will not inject (more) cash or capital into the airline through Khazanah … so Khazanah (as sole owner) will have to conduct his own exercise to ensure the survival of Malaysia Airlines,” He said on BFM Radio’s Breakfast Grille show on Thursday.
When asked if the Ministry of Finance will give MAB any guarantees and if the government will shut down the airline, he said: “At this time we are not looking for any government support.
“It depends on Khazanah as sole owner of Malaysia Airlines. I have never said Malaysia Airlines will close.”
Reuters reported Wednesday that Malaysia Airlines parent Malaysia Aviation Group (MAG) has warned leasing companies that Khazanah would stop financing the group, forcing it into a liquidation process if restructuring negotiations with lessors are unsuccessful. .
The warning from MAG, the airline’s holding company, raises the stakes in negotiations for a financial restructuring known as “Plan A” and establishes an alternative plan to divert funds to a sister airline, Firefly, according to a letter seen. by Reuters.
In short, Khazanah was looking for a possible merger with other airlines, including low-cost carrier AirAsia.
, since last year, but in vain.
The COVID-19 pandemic has literally brought the aviation industry to its knees with several airlines globally closing or declaring bankruptcy when borders were closed and planes were grounded.
Meanwhile, Endau Analytics aviation analyst Shukor Yusof was quoted as saying that MAB should be disbanded as it could no longer be salvaged.
“Malaysia Airlines problems have been deep and difficult to repair. With the spread of COVID-19, the company’s finances are becoming increasingly difficult to manage.
“Since the tragedies of the MH370 and MH17, Malaysia Airlines has struggled to improve its brand. The company’s performance is declining and Malaysia Airlines has had inherited problems for many years.
“We have to accept that Malaysia Airlines has a big problem and, in my opinion, we should disband Malaysia Airlines,” he told Astro. Awani.
The airline industry is expected to lose US $ 84.3 billion in 2020 for a net profit margin of -20.1 percent, while revenue will fall 50 percent to US $ 419 billion from US $ 838 billion in 2019, according to the International Air Transport Association (IATA).
In its financial outlook for global air transport, IATA said that by 2021, losses are expected to decline to US $ 15.8 billion as revenue increases to US $ 598 billion.
“Financially, 2020 will turn out to be the worst year in aviation history. On average, every day this year they will add $ 230 million to the industry’s losses. In total, that’s a loss of $ 84.3 billion.” , He said. – Bernama
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