MAS briefs unions over restructuring plan

by **Cals** Mon 11 Aug 2014, 23:01

Business & Markets 2014

Written by Meena Lakshana of theedgemalaysia.com

Monday, 11 August 2014 17:19

PETALING JAYA (Aug 11): Malaysia Airline System Bhd (MAS) said it has briefed its employee unions and other associations after state-owned Khazanah Nasional Bhd proposed to buy up all MAS shares and delist the counter from Bursa Malaysia.

"Today, the MAS leadership met with representatives of its employee unions and other associations as the first step to inform and engage employees on the future restructuring of MAS," said MAS media relations manager Khairunnisak Dzun Nurin.

“While there are still many details about the future which will be forthcoming, Malaysia Airlines is committed to working closely with all its employees and airline partners throughout this process following the principles of fairness, transparency and compassion.

“It is critical for all to focus on maintaining Malaysia Airlines’ business momentum and to continue to deliver world class service to its customers,” she added.

However, no further details on the briefing were divulged.

Last Friday, Khazanah, which hold a 69.3% stake in MAS, requested the airline company to undertake a selective capital reduction and repayment exercise, which will result in state investment arm becoming the sole ordinary shareholder of MAS.

Under the plan, Khazanah will have to pay out RM1.38 billion to take over the shares it does not own.

The airlines’ financial performance has not been positive, recording losses for the past three financial years.

For the first quarter ended March 31, 2014, MAS posted net losses of RM443.39 million compared with RM278.83 million a year earlier.

The move to delist the national carrier comes after MH370 went missing on March 8, followed by the shooting down of MH17 over Ukrainian airspace on July 17.