National Airlines Malaysia Airlines faces the risk of being closed
Malaysian Prime Minister Mahathir Mohamad is considering all options for Malaysian Airlines, including the possibility of closure.
Overcast future after two aviation disasters
Malaysia Airlines has attempted to revive its business after two air disasters in 2014. The flight MH370 carried 239 people (including crew) disappeared in the Indian Ocean on March 8, 2014 and returned. into the most mysterious case of modern civil aviation.
Subsequently, on July 17 of the same year, the carrier's MH17 aircraft were shot down in eastern Ukraine airspace, killing all 283 people and 15 crew members.
Losses from the tragedy MH17 continued to pull down Malaysia Airlines' stock prices on the stock market further, down 18% in the closing session on July 18, 2014. And from the beginning of 2014 until that time, Malaysia Airlines' shares were devalued by 35%.
In fact, before the disappearance of the flight flight MH 370 on March 8, 2014, the airline announced its third consecutive year of losses with a total loss of $ 1.3 billion. When the aircraft bearing the MH370 number has not been found, the customer has turned against Malaysia Airlines after the flight MH17 was shot down in Ukraine.
In an effort to help Malaysia Airlines overcome the crisis, state investment fund Khazanah Nasional Bhd - owns 69% stake in Malaysia Airlines, has fully acquired the business and invested an additional 6 billion ringgit (1 , $ 5 billion) into the airline. Malaysia Airlines struggles after two aviation disasters in 2014.
However, five years after the disaster, the airline still struggles to recover while trying to bring in profits. The financial report of Khazanah Nasional Bhd in 2018 showed that the fund suffered losses of more than 6.27 billion ringgit (more than 1.5 billion USD), of which half was due to Malaysia Airlines.
The government will decide the future of Malaysia Airlines
The head of the Malaysian government last week told reporters that he was studying the best option for Malaysian Airlines, including refinancing, selling off or closing completely.
“Closing the national airline is a very important issue. This will be decided by the Government. We have to decide soon, "Bloomberg quoted Mahathir as saying.
The considerations of the Mahathir government were given in the context of the global aviation industry being shaken by the crash in Ethiopia on March 10, killing 157 people. Ethiopian Airlines Boeing 737 MAX plane crashed just minutes after takeoff.
Although Malaysia Airlines currently has no Boeing 737 MAX aircraft in its fleet, they are expected to receive these aircraft deliveries by 2020.
Malaysian Economy Minister Mohamed Azmin Ali said that state investment fund Khazanah Nasional BHD needs to reconsider the agreement to buy 50 737 MAX (worth $ 5.5 billion) with Boeing in 2016 of the national airline. Malaysian family after the disaster in Ethiopia last weekend.
According to Mr. Azmin Ali, the above issue is very urgent and should be reviewed by Khazanah Nasional Bhd to ensure the safety of this airline's customers. The minister stressed that the government is closely monitoring the investigation of Boeing 737 MAX aircraft accidents.
"Malaysia Airlines' outlined scenarios are being discussed at many meetings, including airline leaders and Khazanah Nasional Bhd," Azmin Ali told reporters on March 12. He also said the company could explore new markets from Indonesia and Thailand to support recovery strategies.