The Government Does Not Know What To Do With Struggling MAS
The national carrier is suffering losses and might need financial support from its shareholders soon.
By Mei Mei Chu — 08 May 2014, 03:22 PM — Updated over 10 years ago
Malaysia's National Carrier Malaysia Airlines (MAS) Has Signalled That It May Need Another Financial Rescue As It Struggles To Make A Profit
March 26 — Even before the loss of its Flight MH370, Malaysia Airline System (MAS) was bleeding cash, prompting talk that it may need another financial rescue from state investor Khazanah Nasional Bhd, its majority shareholder.
themalaymailonline.com
MAS, Southeast Asia’s fourth-largest airline by market value, has had negative operating cash flow for three years - which means it is not generating enough cash to meet its day-to-day operating costs - and has had negative free cash flow - operating cash flow minus capital expenditure - for six years.
themalaymailonline.com
On 8 May 2014, Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz Revealed That The Government Will Not Provide Anymore Financial Support For MAS
On 8 May 2014, Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz Revealed That The Government Will Not Provide Anymore Financial Support For MAS
Image via themalaysiantimes.com.myBad news continues to pile up for Malaysia Airlines (MAS), with Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz ruling out any financial support for the ailing national carrier.
therakyatpost.com
Nazri Aziz Says The Government Is At A Loss Over What To Do With MAS, "To Inject New Capital Is Certainly Not An Option."
Gulf News reported Nazri as saying that the government is at a loss over what to do with MAS, the fourth largest Southeast Asia carrier, which has been struggling in a competitive environment, even before MH370 clipped its wings further.
malaysiakini.com"To inject new capital is certainly not an option," he had said at a tourism fair in Dubai.
malaysiakini.comNazri Aziz Refused To Divulge Whether The Government Is Still Confident In MAS' Senior Management
Acting Transport Minister Hishammuddin Hussein at a MH370 press conference.
Image via themalaymailonline.comThe news website also reported that Mohamed Nazri said the Transport Minister will be tasked with determining the government’s plan for the national carrier. Senior management at the airline could also be on the chopping block.
therakyatpost.com
“Mohamed Nazri was unwilling to comment as to whether the airlines senior management still has the support of the government. Its chief executive, Ahmad Jauhari Yahya, was hired in 2011 and has been directed to turn the airline around. However, it is unclear if the government could move to oust in following the backlash on flight MH370,” Gulfnews wrote.
therakyatpost.com
MAS CEO Ahmad Jauhari Yahya Had Previously Admitted That MAS Would Need At Least 6 Months To Recover From Market Reputation Issues Following The MH370 Incident
MAS CEO Ahmad Jauhari Yahya Had Previously Admitted That MAS Would Need At Least 6 Months To Recover From Market Reputation Issues Following The MH370 Incident.
Image via themalaymailonline.comDespite a 27 percent improvement in passenger traffic in 2013, the national carrier not only failed to turn a profit but more than doubled losses from the previous year. It suffered a net loss of RM1.2 billion.
malaysiakini.comLast month, MAS chief executive officer Ahmad Jauhari Yahya (right) noted that an airline would need at least six months to recover from a market reputation issue after MH370, but stressed that MAS would do it sooner.
malaysiakini.com