No bailout forthcoming, Khazanah warns MAS
Azman said the funds MAS could expect to get from Khazanah would be tied to the airline’s performance. — File picKUALA LUMPUR, May 23 — Khazanah Nasional today said its commitment to Malaysia Airlines’ (MAS) recapitalisation exercise is contingent upon the national carrier’s performance.
“We can put in the money but we also need to see results because this is public money that we are talking about,” Khazanah director Tan Sri Azman Mokhtar told reporters at Axiata Group Bhd’s annual general meeting here.
“It cannot be a bail out,” he stressed, when asked to confirm the amount of capital Khazanah could commit to the national carrier’s plan.
Azman also added, “We need to see results coming through; we need to see Malaysia Airlines’ union, management, board and all stakeholders to work together to advance the company.”
The national carrier recently announced a RM9 billion fund-raising exercise to pay for aircraft purchases and to finance its working capital.
Among the plans is the issuance of up to RM2.5 billion in Islamic bonds by June this year.
MAS also had said that if its plans fall short, it would rely on parent company Khazanah Nasional to step in to provide financial support in the form of capital equity injections to finance any unfunded aircraft capital expenditure and also working capital needs. — Bernama
