Malaysia Airlines (MH, Kuala Lumpur International) has submitted a new turnaround plan to its owner, Malaysian sovereign wealth fund Khazanah Nasional, and expects a decision by early July 2019, CEO Izham Ismail told Air Transport World.
Short of disclosing any specific details of the plan, Izham said that it included "some element" of fleet restructuring and business remodelling in order to better compete with the LCCs. However, Malaysia Airlines itself will remain a full-service carrier.
The Malaysian carrier will also seek closer business ties with JAL - Japan Airlines (JL, Tokyo Haneda). The two airlines have already applied to enter into a joint business agreement (JBA). Izham said that further strengthening of ties, including know-how sharing, are to be expected. Malaysia Airlines also wants to seek more strategic partners through JBAs or joint ventures.
Speaking to the Malay Mail, Izham also said that he believed that shutting down the loss-making airline - an option previously floated by the Malaysian Prime Minister Mahathir Bin Mohamad - would be a mistake.
"Shutting down Malaysia Airlines would be a wrong move. This is my personal opinion, not the views of the organisation, the shareholders or its board of directors," Izham said.
Mahathir previously said that the preferred alternatives were either the carrier's internal turnaround or sale to a partner.
Meanwhile, the government of Sarawak, a Malaysia state on the island of Borneo, said it will not invest in the struggling flag carrier.
Sin Chew has reported the Chief Minister of Sarawak Abang Abdul Rahman Zohari as saying that Malaysia Airlines was "too big" for the state's budget. However, Sarawak will consider investing or even taking over the carrier's regional unit, MASwings (MY, Kota Kinabalu), which operates within Borneo.
Sarawak is alternatively considering establishing its own airline to operate regional and charter flights from the state.
