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Malaysia Airlines says it may shut down if restructuring proposal fails
Cash-strapped Malaysia Airlines is heading for a showdown with aircraft lessors.
The lessors have opposed the airline’s restructuring plan but if they don’t back it Malaysia Airlines will be forced to close down.
Malaysia Aviation Group CEO Izham Ismail said it will be left with ‘no choice but to shut it down.’
"There are creditors who have agreed already. There are others still resisting, and another group still 50:50," Izham said in an interview.
"I need to get the 50:50 ones (on board) with those who have agreed."
Izham explained the restructuring plan ains to bring the airline to break-even by 2023, based on the expectation domestic and Southeast Asian markets return to pre-pandemic levels by mid-2022.
It also requires a fresh cash injection from sovereign wealth fund Khazanah to tide it over for the next 18 months.
The lessors called the plan ‘inappropriate and fatally flawed; and have vowed to challenge it.
The airline warned lessors that Khazanah would cut off further funding if it is not approved, which would lead to the winding down of Malaysia Airlines.
If there is no agreement, Izham said there could possibly be a ‘Plan B.’
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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