KUALA LUMPUR: THE parent company of Malaysia Airlines (MAS) said yesterday it would unveil a plan within six to 12 months to restructure the struggling airline.
However, Khazanah Nasional Bhd, which controls 69 per cent of the national carrier, said it would not disclose how it planned to restructure MAS, according to its managing director Tan Sri Azman Mokhtar.
"But suffice to say, a lot of work has been done," Azman told reporters on the sidelines of the Invest Malaysia 2014 conference here yesterday.
He said Khazanah has to carefully balance its role.
"As a major stakeholder and the custodian of taxpayers' money, we must ensure the fund is well deployed."
Over the past decade, Khazanah had injected RM5 billion into MAS to restructure the troubled airline.
"We have not been successful with the restructuring of MAS and it is not for lack of trying.
"Clearly the answer is 'no' (in terms of success) financially but from a national standpoint, it has contributed to enhanced connectivity and trade," he said.
In April last year, MAS had announced a rights issue and plans to revamp its capital structure, which aviation analysts had described as 'a new start' for MAS.
However, the airline turned in its worst quarterly performance in two years early this year amid ticket sales slump after the March 8 disappearance of Beijing-bound flight MH370.
Azman said despite the financial losses, the national carrier's load factor reached 81 per cent and its participation in the One World Alliance provided more options for the company's turnaround.
He said there is a possibility of the national carrier downsizing its flights in the near future until a restructuring plan was formulated, given that MAS has a reasonable leeway in making choices over its network plan.
Azman said several options were being studied.
"The ability of the company to drive the right outcome in terms of work culture and internal alignment (discipline), external support from the government and public (on their expectations), and the management and leadership of MAS are all key.
"Internally, MAS needs to increase its productivity, while externally we must be realistic with regard to global and regional competition and what we want for MAS."
He admitted that it has been challenging for the MAS leadership. "Chief executive officer Ahmad Jauhari and his team have done a credible job considering the circumstances."
On Ahmad's position in the company, he said it was a decision for the board.
Studies are ongoing as various options in other countries and other airlines are being analysed.
Azman said the government, as the special shareholder, will decide on the final recommendation put forth. Additional reporting by Rozanna Latiff and Zafira Anwar
