Speculation has mounted that Malaysia Airlines (MAS) chairman Tajudin Ramli will give up control of the loss-making national carrier to a foreign airline. Malaysia's finance minister, Daim Zainuddin, has said that a deal is near and "we hope to make an announcement soon".
Tajudin controls MAS through aviation holding company Naluri, in which he is the biggest single shareholder. Naluri, which like MAS is heavily in debt, is itself the biggest individual shareholder in MAS with a 29% stake.
The government has a 'golden share' and holds a sizeable stake through various investment companies. It has confirmed that it is in talks to purchase equity from Naluri, and it is likely that many of the shares will then be sold to an international carrier - Qantas Airways, KLM and Swissair are potential equity partners.
The future ownership of MAS has been in question for months, ever since it was revealed that Qantas may take a stake in a move that would bring the Malaysian airline into the oneworld alliance. The Malaysian government is frustrated that Tajudin has failed to turn the carrier around, while Naluri is in need of cash to repay debts.
In early November, a local newspaper quoted transport minister Ling Liong Sik as saying a foreigner will be appointed chief executive, while a new chairman has been "identified". Although Ling later denied making the comments, many believe a foreign head will be appointed in a bid to return the carrier to the black.
There has been speculation about an impending sale to a foreign carrier after the government approved a request from MAS for its ceiling on foreign shareholding to be raised.
The government is also thought to have privately approved a longstanding request from the carrier to increase ticket prices for domestic services within peninsular Malaysia by 50%. Much of the carrier's losses have been blamed on its uneconomical domestic operations.
Source: Airline Business
