Malaysia Airlines to get additional funds from sovereign wealth fund

Aviation Updates Philippines – After getting the nod from regulators, the operator of Malaysia Airlines will be getting additional capital from state sovereign wealth fund Khazanah Nasional Berhad. 

Image: Malaysia Airlines A350 (Credit: Malaysia Airlines)

Khazanah Nasional – the sole owner of the airline – will inject the additional MYR 3.6 billion (~USD $890.5 million) following the approval it got from a British court to proceed with a liability restructuring deal with an aircraft leasing deal. The package includes lower rates and payment deferrals.

The funds will also be used to help the airline continue operations through 2025 as the restructuring plan will reduce the carrier's liabilities by more than MYR 15 billion (~USD $3.6 billion). Malaysia Airlines is seeking deals with lessors, maintenance providers, lenders, and state-owned companies as part of the plan.

“Now that the scheme has been formally sanctioned by the UK court, the airline can proceed to implement its restructuring plan with the support of its sole shareholder, Khazanah Nasional Bhd and existing stakeholders,” the group said in a statement.

Aside from the restructuring plan, Malaysia Airlines CEO Izham Ismail has previously stated the carrier is looking to start other initiatives to better position itself for recovery as a global travel group.

In a report by Reuters, Ismail was quoted saying: “We seek to expand MAG’s involvement into other travel-related products and services beyond flights, which will go a long way in helping our customers complete their end-to-end travel experience.”