Following the rejection of a restructuring plan for Malaysia Airlines by a group of leasing companies, the airline's top official warns of a possible shutdown of the airline.
Malaysia Aviation Group (MAG) CEO Izham Ismail said the airline group would have “no choice but to shut it down” if lessors decide against backing the restructuring plan.
Ismail added: “There are creditors who have agreed already. There are others still resisting, and another group still 50:50.” He added that he would need to get the “50:50 ones” to join the group who have agreed to the plan.
Malaysia Airlines' plans for restructuring over 5 years assuming the demand in domestic and Southeast Asian markets return to 2019 by mid-2022.
The group of leasing companies who rejected the plan include 70% of companies who have leased jets and engines to the airline group. Reported by Reuters, the group called the plan “inappropriate and fatally flawed” and pledged to challenge it.”
Adding to the problems for the airline group, Malaysia Airlines Group warned leasors Khazanah Nasional would stop funding the company forcing the airline into a winding down process should the restructuring plan fails.