Ground control

21 March 2019 By Clara Ferreira Marques

The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.

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Malaysian Prime Minister Mahathir Mohamad said on March 12 that the government is considering whether to shut, sell or refinance its flag carrier, Malaysia Airlines, and would make a decision “soon”.

The airline - hit by twin disasters in 2014, including the disappearance of flight MH370 - had aimed to break even in 2018.

Sovereign wealth fund Khazanah Nasional took the carrier private in 2014. Managing Director Shahril Ridza Ridzuan said on March 5 that the government needed to take a call on its investment in Malaysia Airlines.

Malaysia Airlines said on March 1 that it had finished 2018 with only a “marginally lower loss”, blaming crew shortages, along with increased supply as competitors added capacity, and volatile fuel and currency conditions.

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