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Mahathir criticises Malaysia Airlines takeover

Published on Aug 12, 2014 3:12 PM
 
Influential Malaysian former prime minister Mahathir Mohamad on Tuesday, Aug 12, 2014, criticised the takeover of crisis-hit Malaysia Airlines by the country's sovereign wealth fund as a recipe for more losses by the carrier. -- PHOTO: BLOOMBERG

KUALA LUMPUR (AFP) - Influential Malaysian former prime minister Mahathir Mohamad on Tuesday criticised the takeover of crisis-hit Malaysia Airlines by the country's sovereign wealth fund as a recipe for more losses by the carrier.

Sovereign fund Khazanah Nasional, which has controlled the airline for years via a 70 per cent ownership stake, said last Friday it plans to buy all remaining shares, de-list the stock, and take the carrier private before undertaking a "complete overhaul".

The fund acted after the double tragedies of flights MH370 and MH17 pushed Malaysia Airlines (MAS) - which had already been losing money for years - to the financial brink.

"Khazanah has been in full control of Malaysia Airlines all this time. And all this time Malaysia Airlines has been bleeding profusely," Tun Dr Mahathir, prime minister from 1981-2003, wrote on his blog. "So why should anyone believe that with 100 per cent control Khazanah will not keep on losing."

 
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