Malaysia Aviation Group, the parent of Malaysia Airlines (MH, Kuala Lumpur International), owes the Malaysian government MYR5.3 billion ringgits (USD1.3 billion) for the purchase of eight widebody aircraft in 2012, Deputy Minister in the Prime Minister’s Department Mohamed Farid Md Rafik revealed.
As reported by the Malaysian Reserve, the debt relates to the acquisition of six A380-800s, delivered to the carrier between May 2012 and March 2013, as well as two A330-300s.
The debt is formally held by MAB Pesawat Sdn Bhd, a subsidiary of Malaysia Aviation Group. Mohamed Farik underlined that neither of the three airlines owned by MAG, namely Malaysia Airlines, MASwings, and Firefly, has any direct debts to the state.
The entire loss-making group is currently under scrutiny after the Khazanah Nasional sovereign wealth fund which owns MAG, posted a MYR6.3 billion ringgit (USD1.5 billion) pre-tax loss in 2018.
The financial results of MAG for 2018 will be revealed after an audit.
