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Khazanah to consider turnaround plan for Malaysia Airlines

Malaysia's sovereign wealth fund Khazanah Nasional will make a decision in the third quarter on a turnaround plan for the parent company of Malaysia Airlines.

Malaysia Aviation Group (MAG) tells FlightGlobal that the plan was submitted in February, and covers airline units Malaysia Airlines, Firefly, MASwings and MAB Kargo, as well as its its wider, non-airline operations.

"The plan will look at diversifying the group’s overall revenue by driving growth in other aviation related portfolios," it adds.

The new long-term strategy is a follow-on from its recovery plan, which MAG says fulfilled the original aim of "resetting" Malaysia Airlines.

"However, a new comprehensive long-term strategy is needed to ensure a sustainable and dynamic business that is responsive to market needs and changes," it adds.

Khazanah took the carrier private in late 2014 after it was rocked by the disappearance of flight MH370 and the shooting down of flight MH17. That kicked off a 12-point, MYR6 billion ($1.44 billion) restructuring plan, which envisioned the airline re-listing on the Malaysian stock exchange once it is profitable.

That recovery has, however, been hampered by high fuel prices in 2018 and currency volatility - not to mention the departure of three chief executives since the privatisation.

Earlier in the year, Malaysian prime minister Mahatir Mohamad said that the government was considering options for the future of the carrier, which included making further investment, selling it off or even shutting it down.

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