In a news report published by a foreign financial media, Khazanah Nasional Bhd is currently considering to provide as much as 5 billion ringgit to the national flag carrier, Malaysia Airlines.
The aid aims to carry the airline through the impact caused by the coronavirus outbreak and to resume fresh capital and if approved, the cash infusion could take place in coming weeks.
Amid the Covid-19 outbreak, Malaysia Airlines, like its counterparts have had to cancel flights, deferred non-critical spending and cut costs. Bloomberg further reported that the government hasd explore the possibility of bailing out its domestic airlines.
Former chief executive officer of Petroliam Nasional Bhd, Wan Zulkiflee Wan Ariffin was also made the new chairman of the airlines.
The International Air Transport Association (IATA) had previosly stated that the airline industry could be facing a global debt of $550 billion by year-end, a $120 billion increase over debt levels at the start of the year.
According to IATA, governments have committed to a total of $123 billion in financial aid to airlines, in which $67 billion will need to be repaid. The balance, de Juniac says will largely consists of wage subsidies, equity financing and tax relief.
As a result of the pandemic, the International Civil Aviation Organization (ICAO) said airlines would register 1.2 billion fewer airline passengers worldwide by September.