Gov't to consider shutting down MAS among other options: PM
Prime Minister Dr Mahathir Mohamad today said the government is open to studying various options on the future of loss-making Malaysia Airlines Bhd (MAB).
Speaking at a press conference in Parliament, Mahathir said the government must urgently consider the various available options, including shutting down the national flag carrier.
Prime Minister Dr Mahathir Mohamad today said the government is open to studying various options on the future of loss-making Malaysia Airlines Bhd (MAB).
Speaking at a press conference in Parliament, he said the government must urgently consider the various available options, including shutting down the national flag carrier.
"I think it is a very serious matter. To shut down the national airlines.
"Whether we should shut it down or sell it off or refinance it? All these things are open to the government to decide on," Mahathir said.
Read more: Hat-trick of bailouts failed to see MAS soar, notes Plus boss
Aviation analysts have said the carrier’s failure to meet its three-year target on profitability has made its operations unsustainable.
English-daily The Sun yesterday quoted an analyst, who spoke on condition of anonymity, that the airline was unlikely to be profitable over the next few years.
Malaysia Airlines previously announced that it incurred lower losses last year, though it did not disclose the figure.
Last week, Mahathir said Khazanah Nasional Bhd (Khazanah) owed an explanation over its first pre-tax loss in 13 years in 2018 which was partly attributed to the performance of the airline.
Malaysia Airlines was taken private by Khazanah as part of its turnaround programme in 2014 with injected initial investments of RM6 billion.
When met by reporters in parliament today, Economic Affairs Minister Mohamed Azmin Ali said Mahathir's concerns were discussed during Khazanah's last board meeting, also attended by management of MAS.
"Tun has given his view on how we should manage the situation now.
"They are taking up this matter seriously. Hopefully they will find a solution for that," said Azmin.
Among others, Azmin said MAB had recently secured a new charter service utilising its six superjumbo A380 from Kuala Lumpur to Madinah, on top of its existing service for pilgrims enroute to perform Umrah or Hajj in Mecca.
With the new charter service, Azmin expressed hope that the airline could explore new markets of pilgrims not only from Malaysia, but also from neighbouring countries in the region.
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