Malaysia Airlines (MH, Kuala Lumpur International) could announce a restructuring plan as early as August in the wake of the loss of its second B777-200(ER) hull, 9M-MRD (msn 28411), over rebel-held territory in Ukraine last week. The incident, which follows hard on the heals of the disappearance of MH370 just four months ago, has forced the carrier's majority shareholder, Khazanah Nasional Berhad, to accelerate its decision process.
Quoting two sources familiar with the airline's operations, Reuters newswire says Malaysia's state investment fund is now expected to unveil its plans after the airline releases its second-quarter results in the middle of next month, expected to be its weakest ever.
Previous reports had originally indicated a 6 to 12-month time frame.
Among the various options Khazanah is exploring is a total privatization of the carrier which would allow it then to implement cost-cutting moves such as job cuts which, in the past, have been blocked by the carrier's all-powerful Malaysia Airline System Employees Union (MASEU).
Analysts have also speculated that a possible bankruptcy filing would also give Khazanah a stronger hand in its negotiations with MASEU.
