Najib: No probability of closing down MAS for now

KUALA LUMPUR, June 19 — Prime Minister Datuk Seri Najib Razak said there is no probability of the government closing down Malaysian Airlines (MAS) for now.

Najib said although MAS was incurring losses, the direction of the airline company was yet to be determined and the financial implication to the government would depend on the outcome of the due diligence being undertaken by the main shareholder, Khazanah Nasional Bhd.

“The government has discussed MAS’ dismal financial performance and has asked that the due diligence be carried out soon to identify the reasons behind the losses and the best options to solve them.

“Khazanah, as the biggest shareholder of MAS, has also undertaken studies to evaluate the airline company’s past performances and its current status.

“The findings of the study will be presented to the Khazanah board as soon as it is finalised in order to decide on the future direction of the company,” he said in a written reply to Lim Guan Eng (DAP-Bagan) in Parliament today.

Lim, who is also Penang Chief Minister, asked Najib whether the suggestion to close down MAS was part of a plan to revive the national carrier which incurred losses amounting to RM4.1 billion since three years ago.

Najib, who is also Finance Minister, was also asked to give a breakdown of the losses recorded during the duration, the negative impact on MAS employees and shareholders and the losses incurred by the government in terms of grant and financial guarantees.

The prime minister also said MAS recorded a net loss of RM2.52 billion in 2011 following the slump in the aviation sector especially for cargo service.

Besides, operating cost especially that of fuel had spiralled while non-fuel cost climbed on capacity-related costs, marketing, maintenance and provisions for phased out aircraft.

Yet, Najib said with the implementation of strategic measures under its comprehensive business plan, MAS succeeded in turning around its financial performance and recorded a net profit of RM431 million in 2012 against RM2.52 billion in 2011. — Bernama