Published on : Jul 22, 2014
With two major disasters hitting Malaysia Airlines in four months, it could possibly be heading towards a delisting. The two options staring Malaysian Air are either going private with Khazanah Nasional Bhd taking it under its wings, or declaring bankruptcy. Both options will eventually lead to the airlines being delisted. If Malaysian Air decides to opt for bankruptcy, in terms of assets, it would be the largest airline to do so since AMR Corp in 2011.
Looking at the revenue generated by top airlines in the last three years, Singapore Airlines generated an average of USD 524,800 and Thai Airways USD 245, 000. Compared to these two airlines, Malaysian Air only generated revenue of USD 220,000. Numbers also show that in the previous three years, the Subang-based airline incurred losses worth 4.13 billion ringgit. During the January to March period, Malaysian Air recorded a loss of 443.4 million ringgit, the most it has incurred in nine quarters. Compared to an 84% fill of seats in June last year, the airlines filled only 77% seats this June. Market analysts predict that these losses are expected to last till the end of 2016 at least.
Before tragedy struck, the airline had planned on purchasing 100 more jets and ordering models such as the Boeing and Airbus.