Malaysia Airlines (MAS) unveiled yesterday, July 30, 2002 a new business model that would accelerate its return to profitability a year earlier than previously estimated. It is now aiming for a modest profit of MYR 94 million (USD 24.7 million) for the financial year to March 21, 2003 after five year of massive losses.
The restructuring plan entails MAS:
- Transfering MYR 6.9 billion (USD 1.82 million) liabilities to Penerbangan Malaysia Berhad (PMB)
- Transfering 73 aircraft worth MYR 5.1 billion (USD 1.34 billion) to PMB
- Issuing 482.5 million new shares at MYR 3.85 (USD 1.02) per share to PMB for assumption of net liabilities of MYR 1.85 billion (USD 486.8 million)
- Selling 70% of MAS Catering for MYR 175 million (USD 46.1 million) to Gubahan Saujana Sdn. Bhd.
- Selling MYR 1.48 billion (USD 389.5 million) of various MAS properties to Ministry of Finance (MOF) Inc.
After the exercise, MAS will:
- Operate international passenger & cargo (domestic and international) services
- Operate domestic routes on behalf of the government for a fee - for the government, which would assume responsibility for any future profit or loss on these domestic routes.
- Remain listed on the Kuala Lumpur Stock Exchange (KLSE)