Malaysia Airlines parent confident of better days ahead on restructuring, Covid-19 vaccination

MAG group CEO Captain Izham Ismail (Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

MAG group CEO Captain Izham Ismail (Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

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SEPANG (April 12): Malaysia Airlines Bhd's parent Malaysia Aviation Group (MAG) is confident of better days ahead for the national carrier after a successful corporate restructuring to mitigate the impact of the Covid-19 pandemic and as Malaysia's vaccination programme is in full swing to curb the spread of the outbreak, which had brought the global aviation industry to its knees.

"After a successful restructuring, and with the national vaccination programme in full swing, we are confident that better days lie ahead. 

"We look forward to an exciting future with strong cooperation with all of you,” MAG group chief executive officer Captain Izham Ismail said in his speech in conjunction with the launch of the MAG Sustainability Blueprint here today.

"To all my colleagues at MAG, let’s make it happen and make MAG great again!” Izham said.

Khazanah Nasional Bhd — Malaysia's sovereign wealth fund — via MAG owns 100% of Malaysia Airlines. 

Khazanah said in a statement on March 4 it continues to provide full support and close cooperation in the comprehensive efforts to ensure the national carrier's sustainability post-Covid-19 pandemic. 

"On Feb 22, 2021, the High Court of Justice of England and Wales sanctioned a scheme of agreement between MAG's leasing entity, MAB Leasing Ltd, and the majority of MAG's aircraft operating lessors, following unanimous support from the lessors.

"This represents an important component of the wider restructuring exercise which will achieve a reduction in MAG's liabilities of over RM15 billion. Moving forward, MAG will focus on working closely with the government and stakeholders on restarting air travel and promoting industry recovery, as well as continuing cash conservation while capturing demand recovery as part of its internal restructuring," Khazanah said.

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