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“Our partners and creditors will have to sacrifice for the better of the future,”..”If they don’t want to help themselves to survive, I have no choice but shut it down.” Izham Ismail, group CEO of Malaysia Airlines, said in an interview with Edge Malaysia newspaper in mid-October.
Malaysia Airlines proposed a debt restructuring plan for 16 billion ringgit ($3.85 billion) in liabilities to its creditors including leasing companies and suppliers., but the proposal was rejected.
The government also not willing to embark on another public-sector bailout of the national carrier, which is fully owned by the sovereign wealth fund Khazanah Nasional.
“The Ministry of Finance will not be injecting any cash or any capital into Malaysia Airlines through Khazanah,” said Finance Minister Tengku Zafrul Aziz.
A proposal has been floated to liquidate the airline and transfer a portion of the assets and staff to Firefly, the group’s low-cost carrier.
Khazanah first took over Malaysia Airlines in 2001 after the Asian financial crisis, holding 69% stake in the company.
Airline suffered further, when flight MH370 disappeared mysteriously en route from Kuala Lumpur to Beijing., and months later flight MH17 being shot down over Ukraine.
Malaysia Airlines has been losing money since 2011, and now there is little hope that the airline will back in its former glory of “Malaysian Hospitality”…