The Malaysian government is considering whether to shut, sell or refinance Malaysia Airlines, Prime Minister Mahathir Mohamad told reporters on Tuesday 12 Mar 2019, when asked about suggestions made by analysts that the airline be shut down or spun off.
“It is a very serious matter to shut down the airline,” ….”We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it off or we should refinance it. All these things are open for the government to decide.” Mahathir told in a news conference at the parliament.
The national carrier had been reporting losses year after year, after earning a record-breaking RM333 million profit in the financial year 1996/1997. Since then it failed to recover even after implementing restructuring, turnaround plans and hiring experienced CEOs.
The airline reported the 2018 financial year on a “marginally lower loss” compared to 2017.
Sovereign wealth fund Khazanah Nasional, which took Malaysia Airlines private in 2014, said the government needed to decide on its investment in, and level of support for, the struggling airline.