Bloomberg: Deputy minister confirms Morgan Stanley helping with Malaysia Airlines recovery
KUALA LUMPUR, July 24 — Deputy Minister in the Prime Minister’s Department Datuk Mohammad Farid Mohd Rafik has confirmed Morgan Stanley’s involvement in turning around financial-crippled Malaysia Airlines, Bloomberg reported today.
According to the international news wire, the Tanjung Piai MP made the announcement in Parliament today, without providing any quotes to support the report.
The New York-based American multinational investment bank and financial services company is reportedly brought in as an independent adviser for the airline’s recovery plan after majority shareholder, Khazanah Nasional Bhd, failed to turn it around after taking over in 2014.
The strategic options on the cards reportedly includes reducing the government’s stake in the airlines to a minority shareholding.
The national airlines’ fortunes nosedived in 2014, following the loss of two planes — Flight MH370 which vanished over the Indian Ocean in March that year and has yet to be found; followed by Flight MH17, which was shot down midflight by surface-to-air missiles over restive Ukraine by perpetrators unknown.
Prime Minister Tun Dr Mahathir Mohamad previously said the government had looked at various proposals to either sell or have the airlines run by outside sources but no decisions were made as they felt none of those proposals were feasible.
The airlines, which has 14,000 employees, cost Khazanah RM6.3 billion in pre-tax losses last year.
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