Former Malaysian Airline System Bhd (MAS) managing director Abdul Aziz Abdul Rahman has suggested that the ailing carrier acquire profit-making AirAsia Bhd as a strategy to resolve its financial woes and return to profitability in the long term.

"(There is) no need for a merger with AirAsia X. MAS is the one that should buy over AirAsia and make it its subsidiary. MAS as the national carrier should lead, rather than the other way round.

"MAS just needs to be managed properly based on market demand," he said here today after appearing on the 'Bernama Today' programme aired on Bernama TV and compered by Gerard Ratnam.

Abdul Aziz (right) also suggested that the national carrier, owned 69 per cent by Khazanah Nasional Bhd, be delisted from the stock market.

"As far as the airline is concerned, it not going to make any difference.

"Delisting will make the management's job easier as there is no need to follow procedures as set by the exchange. But those who bought MAS shares at RM3 or RM5 would be unhappy," he said.

He said the acquisition will enable the combined group to focus on the low-cost fare market which comprises 80 per cent in South East Asia, as well as the competitive premium market, which is a far better proposition than competing against each other.

Proposals and suggestions to save MAS have gained greater traction following net losses in the first quarter ended March 31, 2014 which widened to RM443.39 million from RM278.83 million a year ago.

However, the airline put in place a turnaround plan until it was scuppered by the missing MH370 plane incident in March and now made worse by the shooting down of Flight MH17 in eastern Ukraine last week.

Shares in MAS which have fallen almost 35 per cent on Bursa Malaysia this year and was last traded today at 22 sen.

- Bernama

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