The Malaysian government and Khazanah Nasional are finalising a "comprehensive and holistic" restructuring plan for ailing Malaysia Airlines (MAS), and details will be announced before the end of August, says Malaysian prime minister Najib Razak.
In a statement, Najib says Khazanah’s announcement earlier today to take MAS private is the “first step needed” to return the flag carrier back to profitability.
“It’s a step I wholeheartedly support,” he adds.
He says that the MH370 and MH17 tragedies means that the aviation industry, as well as MAS, will have to change the way they operate.
“Seldom before has a company been subjected to two profound and extraordinary tragedies in such a short space of time,” says Najib,
“We believe our national carrier must be renewed. This means wholesale change, to deliver a wholly different outcome. Only through a complete overhaul of the company can we deliver a genuinely strong and sustainable national carrier. Piecemeal changes will not work.”
Najib also called on all parties – from the management and employees to the unions and creditors - to close ranks and work closely to ensure that the restructuring succeeds.
Khazanah announced earlier today that it will buy out publicly held shares of MAS at a slight premium to their current market value, allowing the sovereign wealth fund to take full ownership of the carrier. Thereafter, it will request to de-list MAS from Bursa Malaysia.