AirAsia tie-up to “prevent MAS bankruptcy” – minister

AirAsia tie-up to “prevent MAS bankruptcy” – minister

The recent tie-up between AirAsia and Malaysia Airlines (MAS) was necessary to stop the national carrier going bankrupt, Malaysia’s Transport Minister has said.

Malaysia’s state news agency, Bernama, reported Abdul Rahim Bakri as saying that the Comprehensive Collaboration Framework (CCF), which involved a share swap between MAS and AirAsia, has given a new lease of life to the national carrier, which posted a loss of MYR769 million (US$244.8 million) in the first half 2011.

“MAS is a national treasure and its impact on the country’s economy will be significant. Whatever the action taken, the government’s intention is to enable MAS to continue to operate and prevent a bankruptcy,” the minister was reported saying in a debate.

“We hope the CCF, although not a popular move, would be able to give new life to MAS and prevent it from falling,” he added.

Mark Elliott
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