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Malaysia Airlines restructuring plan could be unveiled in August: Sources

Published on Jul 22, 2014 9:19 PM
 
A plan to restructure Malaysia Airlines could be announced as early as the end of August, two sources with knowledge of the matter said, after one of its planes crashed in Ukraine in the second disaster to hit the carrier this year. -- PHOTO: REUTERS

KUALA LUMPUR (REUTERS) - A plan to restructure Malaysia Airlines could be announced as early as the end of August, two sources with knowledge of the matter said, after one of its planes crashed in Ukraine in the second disaster to hit the carrier this year.

State investor Khazanah Nasional Bhd said in June it would unveil plans within 6-12 months to restructure Malaysian Airline System Bhd, as a slump in business since the disappearance of Flight MH370 in March left the carrier set to exhaust its cash reserves by mid-2015.

Already squeezed into three years of losses by intense local and longer-haul competition, the airline turned in its worst quarterly performance in two years in January-March.

The carrier, 69 per cent owned by Khazanah, lost its second flight in five months after flight MH17 was shot down over Ukraine this month, killing all 298 people on board.

 
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