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Malaysia Airlines stops shares, faces “complete overhaul”

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“Nothing less will be required to revive our national airline”

Malaysia Airlines said today it had halted trading in its shares. The announcement was followed by revelations that Malaysia’s state investment firm Khazanah Nasional is to oversee a “complete overhaul” of the troubled national carrier.

Khazanah, which currently owns 69.4% of the airline, now aims to buy the rest of the shares in the airline and delist it.

“Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity,” Khazanah Nasional said in its statement, adding that it would consider restructuring all of the airline’s operations including business model, finances and human capital.

Two major tragedies have hot the airline in recent months – the disappearance of flight MH370 and the crash of flight MH17 in Ukraine. Hundreds of people died in the disasters. MH370 went missing on March 8 and an unprecedented and costly search and rescue operation is still ongoing. Most of the passengers on that flight were from China and the crisis resulted in a 60% drop in sales from China.

BBC / Reuters

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