Malaysia Airlines Group approved for reorganization



        Malaysia Airlines (Malaysia Airlines) parent company Malaysia Airlines Group (MAG) has been approved by a British court to recapitalize it and advance an aircraft leasing transaction.


   After approval, MAG will reduce more than 15 billion ringgit ($3.71 billion) of liabilities from its balance sheet. According to Reuters, as part of the transaction, agreements between aircraft leasing companies, maintenance suppliers, lending institutions and state-owned enterprises will be renegotiated.


   The Malaysian government’s sovereign wealth fund, Khazanah, the sole shareholder of MAG, will also inject 3.6 billion ringgit (US$891 million) into MAG to provide MAG with much-needed cash flow to support the airline by 2025.


   Malaysia Airlines Group CEO Izham Ismail (Izham Ismail) said that the airline’s business strategy is being evaluated in order to prepare for the recovery. New initiatives may include growing non-flying business revenue like low-cost competitor Air Asia.


   According to Reuters, Ismail said: “We seek to expand the magazine’s business to other travel-related products and services beyond flights, which will help our customers complete an end-to-end travel experience.”


   At the same time, the oneworld alliance airline grounded most of its fleet, including several flagship Airbus A380s.’