KUALA LUMPUR/SINGAPORE: Proposals to put money into ailing Malaysia Airways embody one from Air France-KLM which desires as a lot as 49% whereas Japan Airways is a 25% stake, sources with data of the matter mentioned.
Home provider AirAsia Group Bhd and Malindo Air, the Malaysian arm of Indonesia’s Lion Air, have additionally submitted proposals, the sources mentioned.
“The bids from the overseas carriers are extra complete and strategic as each plan to capitalize on the strategic location of Malaysia for his or her operations,” mentioned one of many sources.
The Malaysian authorities has been looking for a strategic associate for its nationwide airline, which has struggled to recuperate from two tragedies – the mysterious disappearance of flight MH370 and the taking pictures down of flight MH17 over japanese Ukraine.
In 2014, it was taken personal by sovereign wealth fund Khazanah Nasional Bhd, which paid 1.four billion ringgit ($345 million) for the 30% of shares it didn’t already personal.
The sources declined to be recognized because the discussions are confidential. Representatives for Air France-KLM, Japan Airways (JAL), AirAsia and Malindo didn’t instantly reply to requests for remark.
Malaysian Prime Minister Mahathir Mohamad mentioned on Monday 5 proposals had been obtained as a part of a assessment that began final yr however declined to call the suitors.
Malaysia Airways final yr signed a three way partnership settlement with JAL overlaying flights between Malaysia and Japan, which the Japanese airline mentioned could possibly be expanded sooner or later to cowl U.S. flights.
Malaysia Airways and JAL are each members of the oneworld airline alliance, whereas Air France-KLM is a part of the rival SkyTeam alliance.
Khazanah, which appointed Morgan Stanley final yr to advise on potential choices for the airline, mentioned it was working carefully with the federal government.
“Whereas there have been a number of proposals on this regard, a assessment of the choices obtainable to us continues to be ongoing,” Khazanah mentioned in a press release.
Sources mentioned Air France-KLM had proposed establishing a hub for upkeep, restore and overhaul providers in Malaysia, whereas Japan Airways had provided to make the Southeast Asian nation its regional hub, together with for low-cost flights.
Enterprise information web site Focus Malaysia mentioned on Monday, citing an official doc, that Khazanah had been pushing for AirAsia’s lengthy haul unit AirAsia X to merge with Malaysia Airways.
“A world answer might be higher on this state of affairs as AirAsia would have competitors considerations,” one of many sources mentioned.
“That is nonetheless a piece in progress however the story is across the potential for a large hub in Southeast Asia and it’s clear that worldwide airways see worth in Malaysia Airways due to this,” the supply mentioned.