NATIONAL sovereign wealth fund Khazanah Nasional Bhd is said to be considering providing a bailout of as much as RM5 bil to national flag carrier Malaysia Airlines Bhd (MAB) to help the airline tide over the Covid-19-induced slump in bookings.
According to Bloomberg, which cited sources familiar with the matter, MAB would use the fresh capital to resume some of its suspended operations. If approved, the cash infusion could happen in the coming weeks.
Bloomberg cited an MAB spokesperson as confirming that the carrier had been in discussions with Khazanah.
While the sovereign wealth fund had been supportive of MAB’s efforts to cope with the impact of the pandemic, the spokesperson said that no specific amount of funds has been committed. In the report, Khazanah had declined to comment.
MAB’s plight is shared by other airlines struggling to survive the Covid-19 crisis. But the national carrier had been struggling to turn around since it was privatised in 2014.
MAB had cancelled flights, deferred non-criticial spending, and cut costs since the beginning of the pandemic. – June 11, 2020
