Jakarta, CNBC Indonesia – Malaysia Airlines will be closed if its lessor (aircraft charter) decides not to support the airline’s latest restructuring plan.
As published by the Singapore media Straits Times, this was conveyed by the CEO of Malaysia Airlines group Izham Ismail in an interview with the weekly media The Edge.
“(We) have no choice but to close it down,” he stressed in the interview.
“There are creditors who have agreed. Some still refuse, and other groups are still 50:50 … I need to get 50:50 who (join) those who have agreed.”
He said Malaysia Airlines’s restructuring plan would break even in 2023. However, assuming that domestic and Southeast Asian demand will return to the same level as 2019, in the second and third quarters of 2022.
The plan also requires fresh funds from the Malaysian state-owned shareholder, the state investment company Khazanah Nasional. This is intended to help airlines in the next 18 months.
Lessor will decide this this week. So that the airline can take a path, whether to conduct restructuring or something else.
‘Plan B ‘could involve switching Malaysia Airlines’ flight operator (AOC) certificate to a new airline with a different name. Or, take advantage of AOC from the sister company Firefly and MASwings.
Previously, as published by Reuters, a number of leasing companies have rejected the restructuring plan to reach. This makes the company even more difficult, as published by Reuters, last weekend.
Lessors who claimed to represent 70% called the plan flawed and fatal. Even in the letter that was published in the British media from sources and in a letter to a firm in London, the plan would be met with stiff opposition if it continued.
Covid-19 has hindered Malaysia Airlines’ efforts to recover as since early 2014. The crisis arose at that time due to the incident of the loss of flight MH370 and the crash of MH17 four months later.
The pandemic made world airlines ‘bleeding’ due to lockdowns carried out by a number of countries including Malaysia Airlines. World airlines are forced to make efficiency, lay off employees, and ask for government bailout assistance.
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