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Khazanah to take MAS private: sources

Move 'first step in a major revamp of the loss-making airline'

Published Thu, Jul 3, 2014 · 10:00 PM
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[KUALA LUMPUR] Malaysian state investor Khazanah Nasional Bhd plans to take Malaysian Airline System Bhd (MAS) private as the first step in a major restructuring of the loss-making airline following the disappearance of its Flight MH370, two people with direct knowledge of the matter told Reuters.

A de-listing would pave the way for Khazanah to revive the ailing carrier, possibly by selling off its profitable engineering, airport services or budget airline units, trimming its bloated payroll and installing a new management team.

The restructuring and potential sale of MAS is politically fraught due to heavy opposition to job losses from its powerful labour union, which has hampered previous revival plans, and its status as Malaysia's national flag carrier.

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