Malaysia Airlines, nationalized after two accidents

The Malaysian carrier Malaysia Airlines on Friday that it has suspended trading in the stock Kuala Lumpur after the State, the principal shareholder, announced the purchase of the remaining shares of the company to reform after the two plane crashes it has suffered this year. Malaysian state investment agency indicated in a statement that seeks to address a “complete restructuring” of the airline to reverse their poor performance and meet their “substantial funding requirements.”

The first accident occurred on March 8, when the flight MH370, which was traveling between Kuala Lumpur and Beijing, disappeared with 239 people on board without the search operation has yet found any other appliance. Tracking continues in a remote area of the southern Indian Ocean.

The second incident occurred on July 17 when the Boeing MH17 flying from Amsterdam to Kuala Lumpur was shot down by a missile while flying over the conflict zone of eastern Ukraine with 298 people on board.

Both air tragedies have driven public confidence. The company, founded in 1937, has a fleet of 88 aircraft and carries some 37,000 passengers to some 80 destinations worldwide every day, according to data provided by the company. Those responsible for the airline had opted in recent years by a strategy to win customers for life with cheap flights, which included the best deals on low cost airlines and first class service.

Malaysia Airlines has responded to examine the price offered to minority shareholders and will respond later. Offer ringit 0.26 per share, representing an increase of 12.5 % on the price of the shares on the stock market of Malaysia in Thursday’s session.

“We insist that the restructuring proposal necessarily require that all parties work together so that can be carried out a complete adjustment of the national airline in all material respects,” he noted in his statement Khazanah, chaired by the prime minister Najib Razak.

The government agency has detailed the planned reform will last about 12 months, will reshape the direction will affect the operations of the airline, its business model, finance, human capital and the regulatory environment. ” Nothing less will be needed to revive our national airline to be profitable as a business entity and to serve its function as a key to national development entity,” he said.

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Posted by Khalil Khan on Aug 10 2014. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.