June 11, 2020 / 11:14 AM / a month ago

Malaysia Airlines shareholder Khazanah has not pledged funding- parent company says

KUALA LUMPUR, June 11 (Reuters) - Malaysia Airlines’ parent company has not received any commitment from sole owner Khazanah Nasional Bhd for 5 billion ringgit ($1.18 billion) in financial aid, the airline said on Thursday.

Bloomberg earlier reported that Khazanah, Malaysia’s sovereign wealth fund, was considering providing as much as 5 billion ringgit for the national carrier to resume operations halted due to the coronavirus pandemic.

The Bloomberg report said the cash infusion could happen in the coming weeks, if approved.

Malaysia Aviation Group said in an emailed statement it had not received any funding commitment to ride out the slump in bookings but Khazanah has been supportive of the group’s efforts to address and cope with the pandemic impact.

“As we are currently realigning our Long Term Business Plan to the changing aviation landscape, we are in continuing discussions with Khazanah on the level of support needed moving forward,” it said.

The airline group has said previously it was working closely with shareholder Khazanah Nasional for financial support while also taking steps to defend its cash position to sustain business during the coronavirus crisis.

In an interview over the weekend, Finance Minister Tengku Zafrul Aziz told Reuters that the ministry had not provided any financial aid to any airlines.

“There is no assistance given to any airline. No plan, not to-date. Both said they can do okay, on their own,” he said, referring to Malaysia Airlines and AirAsia Group Bhd. ($1 = 4.2430 ringgit) (Reporting by Liz Lee. Editing by Jane Merriman)

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