Malaysia Airlines minority shareholders back buyout plan
Kuala Lumpur (AFP) - Minority shareholders of Malaysia Airlines voted Thursday in favour of a $420 million bid by its majority owner, state fund Khazanah Nasional, to nationalise the loss-making carrier which suffered two air tragedies this year.
The approval moves Khazanah Nasional, the state investment holding arm of the Malaysian government which owns a 70 percent stake in the carrier, closer to implementing its restructuring plans to return the company to profitability.
"Our shareholders' approval represents a first but major hurdle crossed, and there is much more to be done," group CEO Ahmad Jauhari Yahya said.
Two months ago, Khazanah Nasional pledged $1.9 billion to revive the airline within three years.
Its ambitious plan also includes slashing 6,000 jobs and trimming routes in a bid to stave off bankruptcy.
MAS has bled money for years, with analysts blaming poor management and a failure to keep up with industry competition.
But the outflow has become a torrent due to this year's twin disasters.
MH370 mysteriously vanished on March 8 with 239 passengers and crew aboard. MH17 went down July 18 -- believed hit by a surface-to-air missile -- in rebellion-torn eastern Ukraine, killing all 298 on the plane.
MAS previously had a solid safety record.
