This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28700926
The article has changed 8 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Malaysia Airlines: Khazanah proposes to "overhaul" carrier | |
(35 minutes later) | |
Malaysia's state investment firm Khazanah Nasional has proposed a "complete overhaul" of troubled national carrier Malaysia Airlines. | |
Khazanah wants to buy the shares it already doesn't own in Malaysia Airlines and delist the carrier. | |
The airline has been hurt by two major tragedies - the the crash of flight MH17 in Ukraine and disappearance of flight MH370 - in recent months. | The airline has been hurt by two major tragedies - the the crash of flight MH17 in Ukraine and disappearance of flight MH370 - in recent months. |
The two incidents have triggered concerns about the airline's future. | |
Khazanah, which currently owns 69.4% of the airline, has offered to pay 0.27 ringgit per share for the remaining stock, a 12.5% premium to the closing price on Thursday. | |
Trading in shares in Malaysia Airlines was suspended on Friday, ahead of the announcement. | |
Growing concerns | |
The airlines' flight MH370 went missing on 8 March while flying from Kuala Lumpur to Beijing, leading to a massive search and rescue operation that is still continuing and may cost millions of dollars. | |
The majority of the passengers on board that flight were from China. | |
The crisis led to a high number of cancellations and reputational damage to the carrier, including a 60% drop in sales from China. | |
The carrier suffered another major setback in July after all 298 people on board flight MH17 died as the plane crashed in eastern Ukraine, close to the border with Russia. | |
'Nothing less' | |
The company has been losing money for many years and its market value has fallen by more than 40% in the past nine months. | |
In May, it reported that its net loss widened by 59% to 443m ringgit ($138m; £82m) in the January-to-March period. | |
That marked that the fifth straight quarter of losses for the airline. | |
Khazanah, which has invested more than $1bn into the airline in recent years, had previously indicated that a major restructuring was on the cards. | |
On Friday, the state fund said it would look at restructuring all aspects of the airline's operations including its business model, finances and human capital. | |
"Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity," the fund said in a statement. |