Khazanah Nasional Bhd., the institutional investor of the Malaysian government in the flag carrier, is planning to privatize the beleaguered airline with the aim of averting further losses following the mysterious disappearance of flight MH730. The MH730 incident has been dubbed as the most baffling aircraft disappearance in the world's aviation history. The plane left Kuala Lumpur early dawn on March 8, 2014 on its way to Beijing when it reportedly lost contact with air traffic control less than an hour later.
Khazanah is considering to delist the airline so that it can implement its restructuring plan to turn the airline into profitability again. Part of Khazanah's strategic plan includes the sale of some of its assets in airport services, engineering, as well as its regional airline, MASwings.
However, the planned restructuring efforts definitely won't be an easy way, as it will surely face opposition from its employees as many of them will stand to lose their jobs.
The strong opposition to any changes in management or possible labor loss will be coming from the airline's unionized workforce.
The carrier has been in the red for three consecutive years due primarily to stiff competition, most especially from the rising popularity of the budget airline. Kahazanah disclosed that any restructuring plans shall be announced by the next year.
Malaysian Airlines' poor management system is blamed for its inability to fight off competition amidst the surging popularity of low-cost carriers, AirAsia and Lion Air of Indonesia who have taken over some of the profitable routes.
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