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HomeViral ShortsKhazanah To Stop Funding Malaysian Airlines If Lessor Talks Fails

Khazanah To Stop Funding Malaysian Airlines If Lessor Talks Fails

Malaysia Aviation Group, the parent company of Malaysia Airlines, warned that if restructuring talks with lessor remains unsuccessful, the state fund Khazanah would stop funding for the company.

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.

According to plan A, Khazanah will stop funding MAG and will stimulate its winding process. Both sides have declined to comment on the matter.

However, MAG said its restructuring plan was confidential and would only be out after its final negotiations. Adding that it is a crucial step for the group. It said this comes after many cost reductions and cash conservatives to keep the company going, but nothing worked due to pandemic effects.

This came after the group was asked to increase the discount in price. Meanwhile, according to Plan B, Khazanah will fund Firefly, which will start domestic flights.

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