Malaysia Airlines (MAB) has received another RM300 million in capital from Khazanah Nasional via its holding company Malaysia Aviation Group (MAB). According to The Edge, this brings the total amount of capital pumped into the MAB this year to RM800 million, with the first RM500 million received in March 2019.
The RM800 million capital boost is part of a previous RM6 billion funding that was approved under the 12-point MAS Recovery Plan (MRP) which was launched in 2014. The plan involves a comprehensive overhaul of the airline, including a specific 12-point package of measures whose combined delivery will enable MAB to achieve sustained profitability within three years of delisting, by the end of 2017.
Under the MRP, the airline is also targeted to relist within three to five years, that is between the end of 2017 and the end of 2019. However, group CEO Izham Ismail said earlier this year that 2018 was “an extremely challenging one” with the airline hampered by intense competition and volatility in fuel and FOREX.
“Whilst we saw traction in revenue average seat per kilometer and cost per available seat kilometre, the margin gap was not enough to achieve break even, although losses in 2018 was lower than the previous year,” he added.
Quoting Khazanah’s spokesperson, The Edge said that in order for the group to continue its operations on a “business-as-usual basis”, while taking steps to boost its customer experience and contain losses, MAG “will continue to require funding”.
A+M has reached out to MAB and Khazanah for comment.
This comes after Morgan Stanley was recently appointed to help turn the airline around, according to multiple media reports, amidst the government reportedly considering the sale of MAB. MAB also recently hired Bryan Foong as group chief strategy officer to translate the strategic vision for group CEO Izham Ismail and MAB’s board of directors into strategic priorities and direction. It also bolstered its marketing team with the recent hire of Wai Kuan Wong as head of global marketing and the promotion of Lau Yin May to group chief marketing and customer experience officer.