MAG Not Seeking Capital Injection From Khazanah
KUALA LUMPUR, April 17 (Bernama) -- Malaysia Aviation Group (MAG) has indicated that it has no plans to seek further capital injection from its main shareholder, Khazanah Nasional Bhd.
Group managing director Datuk Captain Izham Ismail said the group is guided by principles that prioritise running MAG as a commercially sustainable business.
However, he did not rule out the possibility of requiring shareholder support if macroeconomic conditions were to deteriorate significantly, citing scenarios similar to the impact of COVID-19.
During the MAG 2024 Annual Performance media briefing today, he said Khazanah Nasional injected RM3.6 billion into MAG in 2021 to support the airline's business, of which RM1.3 billion has been utilised to date.
"So, we still have some funds left to weather the impact. To be fair, it is not fair for the shareholder to pump in money because of the inefficiency of the organisation," he said.
However, he said if there are macroeconomic issues that impact the business, it is up to the shareholder to determine whether it is important for MAG to be assisted.
In a separate development, Izham stated that MAG is keeping its doors open to potential future aircraft acquisitions from China’s Commercial Aircraft Corporation (COMAC).
"We are still evaluating. It's not the end of the game yet with COMAC," he said.
-- BERNAMA