Report: Malaysia Airlines Seeks RM2.1B Aid to Stay Afloat

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Malaysia Airlines Berhad is seeking as much as RM2.1 billion in cash injection to stay afloat, as debt restructuring talks continue with creditors, The Edge Weekly reported.

The report said the troubled national carrier is looking to its sole shareholder and sovereign wealth fund Khazanah Nasional for help.

While the airlines did not say how much is being sought, other sources claimed the amount to be about RM2.1 billion.

Neither Malaysia Airlines nor Khazanah has responded to requests for comments as yet.

The carrier is looking to restructure after the Covid-19 pandemic forced it to slash operations.

Hasnoor Hussain/TMI

Last month, Reuters reported the airlines’ chief executive officer Izham Ismail as saying that negotiations are still ongoing and “taking longer than the planned timeline”.

Izham, who is also group CEO of the parent company Malaysia Aviation Group (MAG), said in a memo to staff on October 16 that there was “encouraging traction”.

MAG also told Reuters discussions with creditors on its restructuring exercise are still ongoing.

The Malaysian Insight reported recently that one of the options for Malaysia Airlines was to restart as a new carrier if the proposed restructuring plan is rejected.

Izham has also said previously the airlines would shut down if lessors decide against the plan. – TMI