KHAZANAH Nasional Bhd today struck a different tone when managing director Shahril Ridza Ridzuan said a merger between Malaysia Airlines Bhd and AirAsia would be a difficult one to carry out.
Khazanah managing director Shahril Ridza Ridzuan said the two entities have different business models and work culture that would make a merger between the two unlikely.
“Malaysia requires both low-cost operators as well as a higher-value operator like Malaysia Airlines to co-exist, because you need to address multiple segments of the market.
“I think for the long-term strategy of Malaysia, (it is) important to provide enough choice, not only for Malaysians to fly, but for international travellers to come to the country,” he was reported by Bernama as saying on TV3’s Money Matters programme yesterday.
He was also quoted as saying earlier this year that Khazanah was waiting for Malaysia Airlines management to present a recovery plan.
Malaysia Airlines is fully owned by Khazanah.
FocusM reported early this year that Japan Airlines Co Ltd and AirAsia were frontrunners to either merge or partner with the national carrier.
On July 10, Shahril Ridza told Bloomberg TV: “In life, never say never to anything”, when he was asked about the merger between the two Malaysian carriers.
He also said Khazanah considered several options for Malaysia Airlines and business partnerships such as that with JAL was the best way forward then.
Khazanah hired Morgan Stanley on July 23 last year to explore strategic options for Malaysia Airlines. – July 26, 2020
Links to earlier stories can be found below:
Malaysia Airlines needs as much as RM21 bil to operate until 2025
How JAL proposes to turn around Malaysia Airlines
AirAsia’s takeover of Malaysia Airlines may cost Khazanah over RM8 bil
