Ground control

21 March 2019 By Clara Ferreira Marques Follow @ClaraMarquesRTR

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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