Tag Archives: 9M-MNF

Malaysia Airlines is placed into receivership, operations continue

Malaysia Airlines (Malaysian Airline System Berhad-MAS) (Kuala Lumpur) today (May 25) was placed into receivership as the company transitions to a new company (Malaysia Airlines Berhad-MAB). The transfer of assets will occur on September 1, 2015. The restructuring could result in the loss of a significant number of jobs as the national carrier downsizes under its 12-point MAS Recovery Plan.

The airline issued two statements:

Malaysia logo-1

The first statement:

Khazanah Nasional Berhad, the sole shareholder of Malaysian Airline System Berhad (MAS), today (May 25) announced the appointment of Dato’ Mohammad Faiz Azmi as Administrator for MAS, effective May 25, 2015.

The appointment of the Administrator will facilitate the transfer of selected assets and liabilities from MAS to the new company Malaysia Airlines Berhad (MAB), effectively by September 1, 2015. MAS continues to operate throughout the period up to and including August 31, 2015, after which MAB will operate the business of the airline from September 1, 2015 onwards.
The appointment is a voluntary undertaking by Khazanah and is made pursuant to the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act), which was passed by both houses of the Malaysian Parliament last year. The MAS Act provides for an effective, efficient and seamless means to transition the business, property, rights, liabilities and affairs of MAS to MAB.
The transition from MAS to MAB is a key component of the 12-point MAS Recovery Plan, which was announced on August 29, 2014, to restructure the national carrier and set it on a path towards sustainable profitability. The MRP also includes conditional investment funding by Khazanah of up to RM6 billion, disbursed on a staggered basis and subject to the fulfillment of strict conditions.

The second statement:

Christoph Mueller, Chief Executive Officer of Malaysian Airline System Berhad (MAS) and CEO-designate of the new airline, Malaysia Airlines Berhad (MAB), assures customers that MAS operations continue as normal with the appointment of the Administrator.

Mueller states, “I assure you our operations are very much business as usual. All MAS flights, schedules, and reservations continue to operate as normal. We remain committed to serving you with our world-class Malaysian Hospitality, and look forward to welcoming you on board Malaysia Airlines.”

“This appointment does not affect our daily operations or existing reservations. You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honored, and that our Enrich frequent flyer program continues with Miles and status preserved”, Mueller added.

Today, Khazanah Nasional Berhad (Khazanah) announced the voluntary appointment of an Administrator for MAS. This appointment reflects the continuing and considerable effort to September 1, 2015, when MAB becomes operational with a new business model and a new management team, led by Mueller.

The appointment by Khazanah, Malaysia’s sovereign fund and the sole shareholder of MAS, is backed by the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act) enacted by the Government of Malaysia. Under the MAS Act, the Administrator plays a critical role to facilitating the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.

Copyright Photo below: SPA/AirlinersGallery.com. The Airbus A380 are likely to be sold with the restructuring. Malaysia Airlines Airbus A380-841 9M-MNF (msn 114) (100th A380 logo) climbs away from London (Heathrow).

Malaysia Airlines aircraft slide show: AG Airline Slide Show

Can Malaysia Airlines survive two major air disasters?

Malaysia Airlines (Kuala Lumpur) is still in crisis mode after the savage downing of flight MH 17 over the Russian-speaking rebel-held area of the eastern Ukraine. The airline now avoids flying over the Ukraine.

Yesterday the flag carrier issued this statement about MH 17:

“Following the agreement Prime Minister Najib Razak brokered with rebel leaders, Malaysia has taken custody of flight MH 17’s black boxes. As the Prime Minister said, they will be passed to the international investigation team for analysis.

The international investigation team, led by the Netherlands, has decided to pass the black boxes to the UK Air Accidents Investigation Branch for forensic analysis. It is normal procedure for black boxes to be sent for analysis to the nearest laboratory authorized by the International Civil Aviation Association.

The black boxes will therefore be flown to Farnborough, UK, accompanied by Malaysian experts and other members of the international investigation team.”

Meanwhile on the financial side, the airline is also hurting. Load factors and yield are reportedly declining given the attention the airline is receiving in the media.

Previously on May 15 the airline reported a growing quarterly net loss of RM443 million ($139.5 million) for the three months ending on March 31, 2014 compared to a loss of RM279 million ($87.8 million) for the same quarter a year ago.

Bloomberg Businessweek is exploring the question of whether the airline can survive as we know it given this double tragedy and declining fortunes and cash flow.

According to the magazine, “MAS executives are focusing on finding a way to save the company. The carrier this week is going to present a plan to its parent, state-run Khazanah Nasional, Bloomberg News reported. Bankruptcy is one option. Taking the company private is another.”

Most likely the carrier will continue to operate in some form but it will probably change.

Read the full article: CLICK HERE

Copyright Photo: Karl Cornil/AirlinersGallery.com. Can Malaysia Airlines, with declining numbers, remain an Airbus A380 operator? The A380 is the flagship aircraft for the carrier but if it can’t fill the seats it may be the wrong aircraft for the airline. Airbus A380-841 9M-MNF (msn 114) arrives in London (Heathrow) with special “100th A380” markings.

Malaysia Airlines: AG Slide Show