With the Malaysian Government poised to regain control of Malaysia Airlines (MAS), the Malaysian Airline System Employees' Union - the flag carrier's biggest trade union - is demanding that the state "never again sell MAS shares to any individual or foreign company".
Prime minister Mahathir Mohammed himself appears to be playing down the prospects of a new sale, despite his government having previously stated that it would sell a minority stake in MAS to a foreign airline after itself gaining a controlling stake. Swissair parent SAirGroup and Qantas has confirmed an interest in MAS. Mahathir also says that no staff cuts will be imposed on the airline, and that it must continue to meet "social obligations".
Kuala Lumpur is expected to seal the purchase of a 29% stake in MAS from the Naluri group within the next few months - the stake was sold when MAS was partially privatised in 1994. This will take the state holding in the airline back to over 50%.
Tajudin Ramli, chairman of both MAS and Naluri, confirmed in December that he would sell the Naluri stake, saying he could not afford to fund the carrier.
MAS has reported losses for the last three years, and has debts exceeding $2.5 billion.
Source: Flight International
