Report: MAS gets another RM300m from Khazanah

The sovereign wealth fund Khazanah Nasional Bhd has injected another RM300 million into Malaysia Airlines Bhd via its holding company Malaysia Aviation Group Bhd (MAG), according to a report, bringing the total capital injections to RM800 million so far this year.

The Edge reported that the latest infusion of cash follows an RM500 million capital injection from Khazanah in March.

A spokesperson for Khazanah reportedly told The Edge that the RM800 million injected into MAG is part of the earlier RM6 billion funding approved under the 12-point MAS Recovery Plan (MRP) that was announced in 2014, but declined to disclose the sum disbursed so far.

Instead, the spokesperson was quoted saying, “In the interim, MAG will continue to require funding to operate on a business-as-usual basis while making efforts in enhancing its customer experience and containing losses”.

Other companies under MAG include FlyFirefly Sdn Bhd, MASwings Sdn Bhd and MAB Kargo Sdn Bhd.

The MRP was a government-backed plan to delist the loss-making airline and return it to profitability. Among others, this entailed delisting the company and making it a wholly-owned entity under Khazanah.

Other possible options on the table include selling a stake in the airline, and the Khazanah spokesperson reportedly said that several parties have expressed interest in buying a stake in MAG.

“Khazanah will evaluate all serious offers, specifically their capabilities financially and from the execution point of view. At this stage, we cannot comment on the process and progress of the evaluation,” the spokesperson was quoted as saying.

The spokesperson reportedly added that the airline’s future direction would be a policy decision for Khazanah’s shareholder, namely the government, to decide; and all options are still being evaluated.

These options include a partnership with other airlines, and a business plan proposed by MAG chief executive officer Izham Ismail last month that promises to achieve financial breakeven by 2022.