Malaysia Airlines suspends Trading in its Shares
Struggling Malaysian Airlines (MAS) revealed on Friday that it is suspending trading in its shares. The news came out before an announcement was made later in the day on restructuring plan to enable the carrier remain afloat following two devastating air tragedies.
State investment fund Khazanah Nasional, owner of 70% of Malaysia Airlines, made the announcement for plans of delisting and taking the airline private. Now, it is expected that the plans pertinent to reforms will be announced during a press briefing at 3.00pm.
It seems that Khazanah Nasional is seriously looking forward to reduce the strength of employees and dump unprofitable long-haul routes to Europe and other destinations along with major changes in the management. Experts believe that these reforms are necessary if the airline wants to remain in the business.
Sixth consecutive quarterly loss from April-June was posted by MAS on Thursday and forecast does not signal revival in near future. The condition of the airlines was worsened by the stigma attached with the MH370 and MH17 air disasters, hitting its bookings.
"The fact that both incidents have occurred within such a short span of time had exacerbated the situation and severely damaged the airline's brand and business reputation, accelerating the need to restructure the company", said state fund Khazanah Nasional Berhad. It announced that the airline will be made private in a bid to bring back its business on track after MH370's loss and the MH17 incident derailed it.
MAS said it is overwhelmed by the support it is getting from its loyal guests and will make every possible effort to provide world-class service to all its passengers. The airline has been defended by Malaysians, who have continued using MAS flights after the MH17 incident on July 17.
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