If the proposal of the Malaysian government pushes through, it will effectively turn the troubled carrier to private ownership. Part of the proposal is the rebranding of the airline to regain the trust and confidence of its loyal customers.
The troubled airline is nursing what could probably be the world's worst twin air incidents in history within a span of less than 5 months - the disappearance of MH370 on March 8 and the MH17 on July 17.
The cost of the retrieval and rescue operations of both aircraft and the compensations given to the victims' families could run up to billions of dollars. The airline was already suffering from losses and indebtedness even before the incidents.
The only way to avoid total bankruptcy, the government is proposing to privatize the airline by selling its stakes to private entities.
Currently, Khazanah Nasional, the state-run parent company of Malaysia Airlines owns 69.4% stake and is going to acquire the remaining 30.6% with an estimated price tag of $470 million.
As soon as the privatization is done, the airline will then undergo massive restructuring in order to improve cash flow.
The state-owned flag carrier has been piling up losses since 2011, amassing a total of $1.5 billion. Furthermore, analysts have forecast a bleak future for the airline, saying it won't be able to break even until 2016.
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