Rm28 Billion Given To Malaysia Airlines So Far

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A total of RM28 billion has been injected into Malaysia Airlines Bhd by Khazanah Nasional. - NSTP/File picKUALA LUMPUR: A total of RM28 billion has been injected into Malaysia Airlines Bhd by Khazanah Nasional so far, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
Tengku Zafrul said there were plans to restructure the liabilities of Malaysia Aviation Group Bhd (MAGB), the parent group of the airline which is estimated to be RM16 billion.
"As of Aug 31, MAGB's liquidity was RM366 million, in addition to the RM578 million allocated to it by Khazanah," he told the Dewan Rakyat in a written reply.
He said that the airline's earnings had been impacted by the Covid-19 pandemic, with 75 per cent of its aircraft grounded due to travel restrictions.
The government was negotiating with Khazanah to find a strategic solution for the aviation group and resolve its financial woes, added Tengku Zafrul.
He was responding to Ahmad Fadhli Shaari's (Pasir Mas-PAS) queries on whether the government would give the airline more funds to stay afloat.
Tengku Zafrul said the government had allocated RM50 billion via the Danajamin Prihatin Guarantee Scheme to companies impacted by the pandemic.
"The guarantee facility is for eligible companies operating in Malaysia in all sectors including airlines," he said.
MAGB has been in the red from inception. Its losses widened to RM1.3 billion in 2018 from RM1.2 billion in 2017.
MAB was established on Nov 7, 2014. It replaced the struggling Malaysian Airline System Bhd (MAS) as the national flag carrier on Sept 1, 2015, via a turnaround plan.
The 12-point turnaround plan entailed delisting MAS and transferring its operations, assets and liabilities to MAB. Its workforce was reduced by 30 per cent to 14,000.
Prior to the 2014 turnaround plan, MAS had received RM17.4 billion in several bailout attempts.
Khazanah has since injected RM6 billion into MAB.
MAB was slated to return to the black by 2017 but has yet to turn a profit.
In a separate parliamentary reply to Anthony Loke (PH-Seremban), Tengku Zafrul said that while the government was committed to help all who have been affected by the Covid-19 pandemic, he indicated it was unable to help "save" the airlines.
"For now the government is not involved in any plans to save any company including commercial flight companies, since the government has to ensure any aid is given especially from the financial aspect has a clear framework and objective to avoid discrimination to other companies also affected by this pandemic."
"Besides, financial assistance to any company will be considered as a bailout and will indirectly affect the performance of other companies that are competitors and who did not receive financial assistance from the government."
He said companies would have to work out their own recovery plans, and any proposal for the company's financial recovery was subject to consideration and approval by the board of directors and shareholders of the respective companies. - NST

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