Ben Bold
Aug 8, 2014

Malaysia Airlines to undergo 'complete overhaul' after state 'privatisation'

MALAYSIA - Tragedy-struck Malaysia Airlines faces a business restructure that could have the carrier renamed, with Malaysia state-run investment firm Khazanah Nasional announcing it wants to buy the shares and delist the firm from the stock market.

Malaysia Airlines to undergo 'complete overhaul' after state 'privatisation'

The news comes as the airline continues to reel from the impact of two major disasters – the disappearance of flight MH370 and the shooting down and crash of flight MH17 in Ukraine, both of which killed hundreds of people.

The investment firm said that the "complete overhaul" would cover "all relevant aspects of, inter alia, the airline’s operations, business model, finances, human capital and regulatory environment". The company said that more details would be revealed at the end of the month.

Malaysia Airlines has been struggling to make money for years. In May, it reported its fifth consecutive quarter of net loss, down 59 per cent to 443m ringgit ($138 million) for three months ending March 2014.

Trading in shares in Malaysia Airlines has now been suspended, marking the first stage of the Malaysian government’s overhaul plan. Khazanah Nasional will offer 27 Malaysian sen for each share in the 31 percent stake of the company it does not own.

Khazanah Nasional said in a statement: "We reiterate that the proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier on all relevant aspects.

"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."

Responding to the proposed delisting, Malaysia Airlines issued the following statement: "We have received notice of Khazanah’s intentions to take full ownership and delist Malaysia Airlines.

"Our board of directors will be deliberating this proposal and an official response from the company will be issued later. During this period, our business operations remain unchanged."

In July, the airline launched its first major brand campaign in recent years in South East Asia, UK, Europe and China. It featured the hashtag #StayStrong.

This article was first published on marketingmagazine.co.uk

 

Related Articles

Just Published

1 day ago

Campaign Crash Course: How to maximise DOOH returns

Digital out-of-home media buying is becoming more common and accessible across Asia. So how does it fit with an omnichannel strategy and how can you measure its returns?

1 day ago

Raya film festival: Watch ads from Julie’s, ...

This year’s top prize goes to snack brand Julie’s, whose ad turned Raya stereotypes on its head and will be remembered for years to come.

1 day ago

TikTok to marketers: Go native and multigenerational

The platform enlisted KFC at NewFronts in the US to persuade advertisers to spend on TikTok.

1 day ago

Uninformed consent, addiction among persistent ...

CAMPAIGN360: Around 170,000 children go online for the first time every day, but the industry has yet to find a way to build their trust and target them safely.