KUALA LUMPUR (July 15): Malaysia Aviation Group Bhd (MAG) – via its wholly-owned unit MAB Pesawat Sdn Bhd – has launched a tender for the sale of its six Airbus A380-800 superjumbos.
According to the tender notice sighted by The Edge, interested parties have until Aug 12 to send their proposals.
In May, MAG chief executive officer Captain Izham Ismail announced that the national carrier will be retiring the A380s, following completion of its debt restructuring.
“We are cognizant of the challenges to sell this aeroplane, but we are still looking at ways and means to dispose of our 380 fleet. At the moment, the management is convinced that the 380 doesn't fit the future plan," Reuters quoted him as saying.
MAG is restrategising its business to position itself as a global travel group and expanding beyond the airline business, Izham had told a press briefing.
Izham had also announced that MAG would take delivery of its Boeing 737 MAX jet orders from 2024, over a course of three to four years.
The group was originally scheduled to take delivery of the jets last July, but following worldwide grounding of the 737 MAX after two crashes, several airlines and lessors cancelled their orders for the jet.
Under its debt restructuring process, MAG was reported to have said it secured savings in liabilities worth RM15 billion, and conserved RM4.2 billion through network cuts and cost-saving.
The group will invest the bulk of a capital injection of RM3.6 billion from its largest shareholder Khazanah Nasional Bhd into the airline's growth, including its digital business, maintenance, repair, overhaul and aircraft deliveries, Izham said.
The chief executive had also projected capacity at about 63% of pre-crisis level for Malaysia Airlines by the end of this year, with the group hoping to break even and become cash flow-positive by 2023.