Ailing carrier, Malaysia Airlines faces state buyout as its trading was suspended till further notice
In a bid to salvage the ailing national carrier and bring about restructuring, all trading has been suspended as Malaysia Airlines faces a state buyout. The company would be de-listed from the stock market.
This decision was a result of the deteriorating business image of the airline after two of its flights, MH370 and MH17 underwent separate disasters leading to the death of all people on board.
The company is currently losing an estimated US$2 million everyday mostly because of its unprofitable business day as well as costs linked to disasters.
Khazanah Nasional, the investment holding arm of the Malaysian government that manages its commercial assets, already owns 70 percent of the flag carrier. After the buyout, it intends to acquire all minority shares and might sell its profitable engineering, airport services or budget airline units. It will also introduce pay cuts and replace the entire management team of the company.
The airline currently employs 19,500 staff members. There is a large possibility that a few thousand employees might be let go of.
Photo Credits: ABC News