It looks like we could soon see major changes at Malaysia Airlines, with (at least) two very different visions for the future of the airline… Malaysia Airlines’ never-ending struggles
Malaysia Airlines has been in financial trouble for quite a while. If we’re being honest, their challenges date back to before the disappearance of MH370, but everything that has happened since has only made matters worse.
Malaysia Airlines isn’t alone in having their future in limbo, as there are so many airlines in similar situations, including Alitalia, Kenya Airways, South African Airways, etc.
They all face similar challenges — the airlines either need to be shut down, or need significant funding. Instead these airlines are being kept on life support and nothing more, so it’s no surprise that things aren’t changing.
Currently Malaysia Airlines is wholly owned by sovereign wealth fund Khazanah Nasional Bhd.
Over the past few years we’ve repeatedly heard about possible Malaysia Airlines takeover bids, though nothing has materialized.
Well, on Monday it was confirmed that the government has received five takeover proposals as part of a review that started last year. Only time will tell if any of these materialize, though we now know of at least two interesting and very different visions for the future of the company. Air France-KLM & Japan Airlines could take over Malaysia Airlines
Reuters is reporting on a new takeover proposal for Malaysia Airlines. With this, Air France-KLM would take over up to a 49% stake in the airline, while Japan Airlines would take over up to a 25% stake in the airline.
Update to story : Air France-KLM is denying this, so it’s not yet known if they haven’t made the bid, or if they’re simply denying this until something further happens, as airlines often do. Japan Airlines already has a joint venture with Malaysia Airlines, so this would translate into even closer cooperation between the two airlines.
Meanwhile this could be a strategic move for Air France-KLM. While Air France doesn’t fly to Kuala Lumpur, KLM flies from Kuala Lumpur to both Amsterdam and Jakarta. KLM has historically had quite a presence in Asia, so this could present a cool opportunity for the airline group.
As a source explains, this proposal is the most comprehensive and strategic, as it would capitalize on Malaysia’s location for their operations. AirAsia’s vision for Malaysia Airlines Sources suggest that AirAsia and Lion Air have also submitted […]