Firefly (FY, Penang) along with MAS Engineering Sdn Bhd are among the assets local Malaysian financial advisory firm, Jentayu Danaraksa, is looking to buy as part of its alternative rescue strategy for ailing Malaysia Airlines (MH, Kuala Lumpur International).
Founded and chaired by former Malaysia Airlines managing director Tan Sri Abdul Aziz Abdul Rahman, Jentayu Danaraksa has crafted a MYR8.75billion (USD2.50billion) proposal to acquire Penerbangan Malaysia Bhd (PMB), Malaysia Airlines' parent prior to its sale to the country's sovereign wealth fund Khazanah, and establish a "premium economy" airline called Fly JD and a leasing firm called JD Leasing.
According to Jentayu Danaraksa's director, Shukor Yusof, Jentayu Danaraksa would operate 86 jets (4 aircraft from PMB and 82 acquired from Malaysia Airlines) while its personnel would be sourced from the 6'000 odd employees Malaysia Airlines will lay off as part of its Khazanah-led restructuring plan.
"JD proffers retaining Khazanah as a strategic partner by issuing new strategic shares in JD Leasing at no cost," he told a press conference in Kuala Lumpur earlier this week. "A substantial number of the 6,000 jobs slated for removal by Khazanah will be absorbed by Fly JD and JD Leasing."
Operations-wise, the new carrier would service routes within the ASEAN bloc not covered by Malaysia Airlines, while JD Leasing will partner a "reputable" international aircraft leasing firm, Yusof added.
Khazanah recently embarked on the mammoth task of restructuring Malaysia Airlines with the carrier's parent holding firm, Malaysian Airline System Bhd, recently suspending trading on the Kuala Lumpur Stock Exchange. Overall, the fund expects to inject a total of MYR6billion (USD976.67million) into the carrier which, once revitalized, is expected to turn its first profit by 2017.
