Khazanah Nasional Sdn Bhd has the option to channel funds into low-cost carrier ,Firefly, all at once making it into Malaysia’s new national airline.
This will only happen in the case of our current national carrier, Malaysia Airlines (MAS), being shut down due to the liquidation of its assets.
According to Berita Harian, Khazanah’s managing director Datuk Shahril Ridza Ridzuan said the team is still negotiating with creditors and aircraft lessors. He also stated, Khazanah and the Malaysia Aviation Group (MAG) will discuss the next step, once the outcome of the negotiations are clear.
“Among the alternative options that can be considered, Khazanah will prepare to stop financing MAS and will instead, finance Firefly to expand its operations for the purpose of fulfilling the country’s need for connectivity,” explained Shahril. “If it goes well, Firefly has the potential to become our national airline.”
The managing director acknowledged that if the alternative is realised, stakeholders will definitely be affected. However, he assured that his party would take the necessary steps in reducing any negative outcomes.
Khazanah Nasional Sdn Bhd acts as a national investment fund and is tasked to realise the government’s effort to provide connectivity. Shahril said, they can either inject funds to MAS (restructuring it successfully) or fund the low-budget airline to expand its operations but “the selected airline must have sustainable finances in order to generate returns.”
The aviation industry is perhaps one of the most affected by the Covid-19 pandemic, due to the decrease in number of flights both domestically and internationally. Feel free to read on how the deadly virus has affected AirAsia recently.
Source: Berita Harian.