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SINGAPORE: Malaysia Airlines’ parent company is still in negotiations with lessors and creditors on a restructuring plan to keep the airline afloat, but talks are taking “longer than expected,” according to a staff memo seen by Reuters.
“Negotiations are still ongoing and taking longer than anticipated, but we are gaining encouraging momentum from lessors and creditors so far,” said Izham Ismail, CEO of Malaysia Airlines and Group CEO of parent company Malaysia Aviation. Group, in a memo to staff Oct. 16.
In response to a Reuters inquiry, Malaysia Aviation Group, owned by the Khazanah state fund, said in an email on Saturday (October 17) that it is “continuing discussions with creditors about its current restructuring exercise.”
Malaysia’s national airline is looking to restructure its business after the coronavirus pandemic forced it to cut back on operations.
Reuters reported last week that a group of lessors had rejected the restructuring plan that involved deep discounts, drawing the airline closer to a showdown over its future.
In the memo to staff, Ismail assured them that the Malaysian Aviation Group’s restructuring exercise “is still in progress.”
