Kuala Lumpur: Malaysia Airlines will have to shut down if its lessors decide not to back its latest restructuring plan, the airline’s group chief executive said.
The group’s chief executive officer Izham Ismail said the group would have “no choice but to shut it down” if lessors decide against backing the restructuring plan.
The restructuring plan will require cash from shareholder, state fund Khazanah Nasional, to help the airline over the next 1 year.
He said the restructuring plan was to prepare a balance sheet over five years, achieving break-even in 2023 on the assumption that demand in the domestic and Southeast Asian markets would return to 2019 levels by the second and third quarters of 2022.
Meanwhile, The group sets out an alternative plan to divert funds to a sister airline called Firefly unit if the state carrier’s bailout talks with lessors are unsuccessful.
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