DR M: SOME PARTIES WANT TO BUY MAS

‘But we want to study whether we need to sell it’

SEVERAL parties have expressed interest in buying Malaysia Airlines Bhd (MAS). Prime Minister Tun Dr Mahathir Mohamad, however, said the government was looking into the viability of selling off the national carrier to save it from mounting losses.

“Certain parties have expressed their wish to buy MAS. We are not rejecting them.

“(But) we want to study whether we need to sell it. (We are) aware that the company, despite hiring a manager from outside (not promoted internally), is experiencing losses.

“So one of the ways (to resolve the problem) is by selling it (company) off.

“I love MAS. I want it to be a (great) national carrier. But it seems that we cannot sustain it,” he said at the Parliament lobby yesterday.

To a question, he said he would consider opinions from former MAS management teams on whether to replace, expand or trim the management or operations of the national carrier.

“We have a number of aircraft that are not fully used. This is causing losses as well.”

Dr Mahathir said although the government had provided financial aid to keep MAS afloat, but it, in turn, had reduced operations significantly.

“The are several ranks of workers. The ones at the lower level are interested to give their best service. But (current) strategies are not yielding so much profit.

“For instance, the government injected RM6 billion to help MAS. MAS, in turn, terminated the employment of 6,000 people.

“As a result, MAS did not fly as much. So it means that the reduction of staff members and operations makes no difference.

“If you reduce the number of personnel but maintain your operations, you can create savings. But if you reduce both, you no longer have the advantage.”

It was reported that half of Khazanah Nasional Bhd’s RM7.3 billion impairments registered last year was in sustaining MAS.

The country’s sovereign wealth fund recorded a pre-tax loss of RM6.3 billion last year, bogged down by higher impairments, lower dividend income and fewer divestments. Dr Mahathir had said Khazanah might have to drop some underperforming companies to save it from incurring more losses.