United Kingdom
United States
Asia Pacific
Opposition to proposed merger of Malaysia Airlines and AirAsia X
Malaysia Airlines’ owner Khazanah Nasional reportedly wants to merge the ailing national carrier with long haul budget carrier AirAsia X but is facing opposition from its own stakeholders.
The Malaysian Reserve reports there is resistance from fund stakeholders calling it a bad deal which is effectively a state funded bail out.
State-owned sovereign wealth fund Khazanah is sole shareholder of Malaysia Airlines and is looking to offload the airline.
There has been little improvement in its fortunes since a $US1 billion restructuring following two deadly air accidents in 2014.
For a merger to proceed, the government would have to inject more money to cover operations and then bankroll all debt repayments.
"Basically, AAX shareholders would get a ‘cleaner’ MAB. Why sell when the government has to clean it up prior to the sale? In fact, there is no single benefit for MAB to merge with AAX," a source familiar with the matter said.
"AirAsia X is not even profitable. The ‘merger’ would only benefit AAX’s shareholders and not MAB or the Malaysian public."
A Comprehensive Collaboration Framework and share swap deal between Malaysia Airlines and the main AirAsia business was previously on the table but was scrapped due to a public outcry over monopoly concerns.
That deal also ensnared AirAsia co-founder and executive chairman Datuk Kamarudin Meranun who settled a fine with Securities Commission Malaysia for alleged insider trading.
Related News Stories:
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.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled