KUALA LUMPUR (July 26): Khazanah Nasional Bhd has stressed that a merger between Malaysia Airlines Bhd and low-cost airline AirAsia would be difficult to carry out.
Khazanah managing director (MD) Datuk Shahril Ridza Ridzuan said the different business model and work culture of the two entities would make a merger between the two an unlikely option.
“Malaysia requires both low-cost operators as well as a higher-value operator like Malaysia Airlines to co-exist because you need to address multiple segments of the market.
“So I think for the long-term strategy of Malaysia, [it is] important to provide enough choice, not only for Malaysians to fly, but for international travellers to come to the country [as well],” he said on TV3’s Money Matters programme yesterday.
Khazanah fully owns Malaysia Airlines.
Shahril reportedly said earlier that the sovereign wealth fund was waiting for Malaysia Airlines' management to come up with a recovery plan.