Malaysian trade backs restructuring of national carrier

The Malaysian Association of Tour and Travel Agents (MATTA) and Malaysian Inbound Tourism Association (MITA) have rallied behind prime minister Najib Razak's call for a complete overhaul of Malaysia Airlines (MAS) in order to return it to profitability and improve its public image.

The airline’s largest shareholder, Khazanah Nasional, last Friday proposed to take full ownership of the airline through an offer to purchase the remaining 30.6 per cent stake it does not already own, which would lead to MAS’ effective delisting from Bursa Malaysia.

Meanwhile, MAS will continue to operate all current flights, schedules and reservations. 

Speaking to TTG Asia e-Daily, MATTA president, Hamzah Rahmat, believes restructuring would have a higher chance of success if carried out without interference from airline unions or politics.

He said: “Sacrifices will have to be made, but it will be for the good of the airline and its sustainability in the long term. MAS used to be a renowned airline in the past, so close to Singapore Airlines. But now, it is behind Garuda Indonesia. Since Garuda’s restructuring, its inflight services and international image has improved. MAS, too, can climb back and become one of the top Asian airlines, and one of the top 10 airlines in the world.

“As far as MATTA is concerned, we strongly back our national carrier for national interest. Where there is a choice of airlines, we urge the travelling consumer to choose MAS.”

Adam Kamal, deputy president 2, MITA, said: “The restructuring is timely in light of MAS’ image after the twin tragedies this year involving two of its aircraft and the airlines’ poor financial performance over the last few years. What is important is for Khazanah Nasional to ensure that this time, the restructuring will be effective.”

MAS’ image took a drubbing in the wake of two major incidents, the mysterious disappearance of MH370 and the downing of MH17 over Ukrainian airspace, both within the short span of a few months.

Over the last 12 years, MAS underwent six restructuring exercises, and details of this latest planned exercise is expected to be announced at the end of this month.

-TTG Asia.