Khazanah Nasional Bhd. will inject around RM3.6 billion with the court approval for Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd. in a restructuring plan till 2025.
The scheme for the capital commitment follows sanction from the High Court of Justice of England and Wales for MAG’s leasing unit- MAB Leasing Limited (MABL) for an arrangement associated with its aircraft operating lessors.
According to MAG, the scheme was under Part 26 of the UK Companies Act 2006 and had received solid support from the lessors. The scheme is also a significant part of the group’s wider restructuring plan to reduce liabilities of more than RM15 billion, MAG added.
The restructuring is expected to be completed by early March, which will be followed by striking deals with government-related entities, finance lessors, maintenance service providers, corporate lenders, and spare engine lessors.
In a statement, MAG Chief Executive Officer, Captain Izham Ismail stated MAG’s long-term aim was to establish itself as a leading travel group worldwide. MAG is seeking to expand its involvement into various travel-related services and products apart from flights that will help customers complete their end-to-end travel experience.
Izham also added that the geographical advantage of Malaysia with its hospitality and award-winning services and solutions will help diversify MAG’s revenue stream without relying on the competitive air travel industry.