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Analysis, Business

Foreign companies eyeing stake in Malaysia Airlines

National carrier has been struggling since two high profile crashes in less than a year.


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Updated: March 26, 2019

 

Several foreign companies, including from Europe, Asia and the Middle East, are keen to acquire a stake in Malaysia Airlines Bhd (MAB), says the Council of Eminent Persons chairman Tun Daim Zainuddin.

He said they do not necessarily take over the whole company, but may hold only part of the national carrier’s interest that is currently 100 percent owned by Khazanah Nasional Bhd.

“Alhamdulillah, those who are keen to buy MAB stocks are either from Asia, Europe and the Middle East. They have expressed their wish to the government and some have written to me.

“They can do research on the company (MAB),” he said in an interview on TV3’s prime-time Buletin Utama on Monday (March 25) night. Daim said the aviation sector is increasingly complex and complicated, and huge funds and expertise are extremely important to grow the business. Consequently, he said if part of MAB’s interest is sold to a foreign company, it will get capital injections and expertise, indirectly restoring the company. “It is okay if others want to buy our stocks, if they want to bring in expertise, then bring it,” he said. He said the government should not interfere with the national carrier’s operations, and it is suffice to lend its support it by helping to secure landing rights at strategic locations.

Daim, however, does not see the need to review the proposed merger of Malaysia Airlines and Airasia as previously mentioned. “Malaysia Airlines is a premium airline, while AirAsia is a low-cost carrier. It is better that they compete … (We get) better value then,” he said. Daim said whatever the government decides, the future and welfare of MAB’s employees should be safeguarded, as they are the ones who would bring the company out of the financial problems.

 



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About the Author: The Star is an English-language newspaper based in Petaling Jaya, Malaysia.

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