Malaysia Airlines (MH, Kuala Lumpur International) could be delisted from the Kuala Lumpur Stock Exchange and privatized in a bid to restructure and return the ailing airline to profitability. Quoting anonymous sources, Reuters newswire speculates that majority shareholder and Malaysia's strategic investment fund, Khazanah Nasional Berhad, could use the privatization of the airline to push through much needed job cuts while replacing the management team.
In addition, the airline's more viable subsidiaries - Malaysian Aerospace Engineering, MAS Aerotechnologies, MAS Ground Handling and Firefly (FY, Penang) - could also be spun off to allow for a more stream-lined operation.
However, Malaysia Airlines' trade unions are expected to block any move to trim the workforce having already done so two years ago. In 2012, the Malaysia Airline System Employees Union (MASEU) scuppered an equity-swap deal with rival AirAsia (AK, Kuala Lumpur International) on the grounds that the agreement was skewed in favour of the LCC.
Khazanah's board, chaired by Prime Minister Najib Razak, is expected to meet at the end of July to discuss the plan.
