The airline had anticipated ordering as many as 100 jets and was considering a range of models from

The company plans to present a revival escorted tours to australia and new zealand plan to its state-run parent Khazanah Nasional Bhd. this week, people familiar with the matter said Monday, asking not to be identified because the talks are private. The options range from Khazanah taking Malaysian Air private to bankruptcy, escorted tours to australia and new zealand according to one of the people, with both routes involving a delisting.
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Malaysian Air says its focus is on the victims and families of Flight 17, while the loss of 537 lives and two planes since March is straining the carrier’s ability to stay in business. escorted tours to australia and new zealand Even a month before the latest disaster, Khazanah was estimating escorted tours to australia and new zealand that the unprofitable airline only had enough funds to last it about a year.
“They don’t have the luxury escorted tours to australia and new zealand of time,” escorted tours to australia and new zealand said Mohshin Aziz, an analyst at Malayan Banking Bhd. in Kuala Lumpur. “Malaysian Air doesn’t have a huge balance escorted tours to australia and new zealand sheet, it’s still struggling from perception issues. We will probably see drastic measures.”
Flight 17 was en route to Kuala Lumpur from Amsterdam carrying 298 passengers and crew on July 17, when it was shot down over eastern Ukraine. The disaster occurred four months after Malaysian Air Flight 370 disappeared with 239 people aboard, leading to the longest search for a missing plane in modern aviation history.
Asuki Abas, a spokesman for Khazanah, couldn’t be reached on his mobile phone for comment. The Wall Street Journal reported July 20 that Khazanah was increasingly leaning toward taking the carrier private, citing unidentified people.
“Our focus during this very challenging time is to work with the emergency escorted tours to australia and new zealand responders and authorities and mobilize full support to provide all possible care to the family members of those onboard MH17,” escorted tours to australia and new zealand Malaysian escorted tours to australia and new zealand Air said in an e-mailed response to queries about the revival plan. “This is not the right time to address this question.”
Shares of Malaysian Air surged 15%, the most since October 2007, to close at 23 sen, above the level before the downing of Flight 17. Still, the stock has fallen 26% in Kuala Lumpur trading escorted tours to australia and new zealand this year and is rated sell by 13 of 15 analysts tracked by Bloomberg. Khazanah, Malaysia’s sovereign escorted tours to australia and new zealand wealth fund, owns 69.4% of the carrier.
On the political front, President Vladimir Putin has defied international anger over Russia’s alleged role in the shooting down of MH17 as the U.S. and Europe threaten further sanctions against his increasingly isolated country. Putin has blamed the Ukrainian government, saying the crash wouldn’t have happened had it not fomented the conflict in the east.
President Barack Obama urged Putin to rein in the rebels, who he said were “Russia-backed.” Bodies gathered from the crash site have been released and the “black box” flight and data recorders handed over to Malaysian specialists. The separatists have denied escorted tours to australia and new zealand they downed the plane.
For Khazanah, privatizing Malaysian Air could mean the fund would need to buy the 31% it doesn’t own in the company, a stake valued at about 1 billion ringgit ($315 million) based on the stock’s latest closing price.
“If they do go through with this privatization, they will be killing a few birds with one stone,” said Terence Fan, an assistant professor escorted tours to australia and new zealand at Singapore Management University, who researches the aviation business. escorted tours to australia and new zealand “They can make the cash flow, maybe have some thorough escorted tours to australia and new zealand strategic change and use this as a chance to rebrand themselves.”
Malaysian Air employees generated an average $220,000 of revenue in the last three years, compared with $524,800 at Singapore Airlines Ltd. and $245,000 at Thai Airways International Pcl, according to data compiled by Bloomberg.
Still, taking the company private remains the preferred option, rather than a bankruptcy, with a decision coming as soon as next month, the people familiar with the matter said. Khazanah said last month the carrier had funds to last about a year.
Even before Flight 370’s disappearance, Malaysian Air had racked up 4.13 billion ringgit in losses over the previous three years. The incident put the carrier under global scrutiny, jeopardizing its reputation and prompting boycotts in China, whose nationals escorted tours to australia and new zealand accounted for most of the passengers in the March flight that vanished.
Losses at the Subang-based airline widened to 443.4 million ringgit in the January-to-March escorted tours to australia and new zealand period, the most in nine quarters, as travel agents in China stopped selling the carrier’s tickets after the disappearance of MH370 and as competition intensified.
Malaysian Air had cash and cash equivalents of 3.25 billion ringgit at the end of March, down 13% from three months earlier. The company may need to raise funds by selling new shares to stay in business, according to Daniel Wong, an analyst at Hong Leong Investment Bank Bhd. in Kuala Lumpur.
The airline had anticipated ordering as many as 100 jets and was considering a range of models from both Airbus Group NV and Boeing Co., a person familiar with the purchase strategy said in February. The carrier needs fuel-efficient jets to cut costs amid rising competition from discount airlines such as AirAsia Bhd.