KUALA LUMPUR - Air France-KLM Group has expressed interest in acquiring a 49% stake in Malaysia Airlines, said sources with knowledge of the matter.
Other airlines, according to the sources, have also submitted proposals to buy stakes in the ailing Malaysian flag carrier including Japan Airlines, which is reportedly looking to buy 25%, and AirAsia.
“The bids from the foreign carriers are more comprehensive and strategic as both plan to capitalise on the strategic location of Malaysia for their operations,” said one of the sources as quoted by Reuters, Tuesday (21/1).
On Monday (20/1) Malaysian Prime Minister Mahathir Mohamad said that five proposals had been received as part of a review on Malaysia Airlines’ financial condition, which has been suffering since the disappearance of Flight 370 and the shootdown of Flight 17 in 2014. However, he declined to name any of the parties involved in the proposals.
In 2014 the airline was taken over by government-owned sovereign wealth fund Khazanah Nasional, which resulted in the airline being delisted from Bursa Malaysia. Regarding its restructuring, Khazanah said it was “working closely” with the government. “While there have been several proposals in this regard, a review of the options available to us is still ongoing,” it said in an official statement. (MS)