SINGAPORE: Malaysia Airlines parent company is still negotiating with lessors and creditors over a restructuring plan to keep the airline afloat, but talks are taking “longer than expected”, according to a memo seen by Reuters.
“Negotiations are still ongoing and taking longer than planned, but so far we are gaining encouraging traction from donors and creditors,” said Izham Ismail, CEO of Malaysia Airlines and CEO of the group. from parent company Malaysia Aviation Group, in a note to staff on Oct. 16.
In response to a question from Reuters, Malaysia Aviation Group, owned by state-owned fund Khazanah, said in an email on Saturday (October 17) that it “was continuing discussions with creditors over its ongoing restructuring exercise.”
The Malaysian national airline is looking to restructure its business after the coronavirus pandemic forced it to scale back operations.
Reuters reported last week that a group of donors had rejected the restructuring plan which involved deep discounts, bringing the carrier closer to a showdown over its future.
In the memo to staff, Ismail assured them that the Malaysian Aviation Group restructuring exercise “is still ongoing”.