Malaysia Airlines talks to lessors in restructuring

Bloomberg

Malaysia Airlines Bhd has reached out to lessors, creditors and key suppliers as part of its “urgent” restructuring exercise as it sees little sign of the pandemic easing.
The flag carrier, wholly owned by Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, would take more drastic measures if the restructuring can’t be completed over the next few months, according to a statement. Bloomberg reported earlier that the airline was said to be talking to banks and leasing companies to defer payments.
“The deep impact of the prolonged Covid-19 crisis has necessitated Malaysia Aviation Group to take drastic steps in revising its long-term business plan further to ensure the group’s relevance and survival,” according to the statement, which refers to the holding company.
The carrier has embarked on salary cuts for its management and pilots, offered no-pay leave, sought payment deferrals and contract renegotiations since March. It will now review its network and fleet plans.
Khazanah supports the restructuring effort, it said in
a statement. “If this effort proves unsuccessful, Khazanah will need to evaluate
options going forward on how to maintain connectivity for Malaysia.”
Airlines globally are grappling with the drop in air travel, especially as authorities bring back restrictions
to combat a resurgence of
the coronavirus pandemic in many countries.