The airline industry was recently rocked by a Reuters report announcing that the group Air France-KLM had indicated its intention to take 49% in the capital of Malaysia Airlines while the company Japan Airlines was to become the second largest foreign minority shareholder, taking a 25% stake in the company, with the remaining shares held by Malaysian investors including Khazanaha sovereign fund belonging to the State.
Khazanah has been the main shareholder of the Malaysian company since 2014This was the year of a severe restructuring of MAS after the disappearance of one of its aircraft and the loss of a second targeted over Ukrainian territory.
The information was given to Reuters by a source close to the sale of the airline. For more than a year, the Malaysian government has been trying to sell the national airline, which continues to accumulate debts. Five groups are in the running for a takeover, including AirAsia - the largest low-cost airline group in Asia - and Malindo Air, the Malaysian subsidiary of the Indonesian group Lion Air. The three other foreign investors were not publicly known until the revelation of a potential offer from Air France-KLM and Japan Airlines.
Air France-KLM finally stated that it had indeed held discussions with the owners of Malaysia Airlines, but that it was not currently involved in the takeover process. " Air France-KLM had already been in contact with the shareholders of Malaysia Airlines, but at this stage, Air France-KLM is not involved in the process of selling Malaysia Airlines. "said the Franco-Dutch group in a press release.
Japan Airlines has also denialHe only mentioned strengthening his commercial links with the Malaysian carrier.
The fact that Air France-KLM was named by an anonymous source close to the case is no coincidence. KLM is close to Malaysia Airlines, as it is one of the few European carriers to fly to Kuala Lumpur, along with British Airways, Condor and Turkish Airlines. Although the Malaysian market is relatively small, Kuala Lumpur is an excellent hub for connections to the rest of Asia and the Pacific. Malaysia Airlines serves 60 cities in Asia and Oceania, with a powerful network covering Malaysia (16 destinations), Indonesia (9 cities), China (7 cities), India (6 cities) and Australia (5 cities).
Of course, within thealliance SkyteamGaruda Indonesia has a fairly similar network, but the recent mistakes by Indonesia's national airline on its expansion strategy make it an unreliable partner.
According to sources, Air France-KLM has proposed creating a hub for maintenance, repair and overhaul services in Malaysia, while Japan Airlines wants to make Kuala Lumpur its regional hub, including for low-cost flights. JAL would also serve to better link Malaysia to North America, with the airline covering several cities in the United States and Canada.
The Malaysian government seems to find the proposals of foreign airlines more attractive than those of local carriers, wanting in fact to avoid a concentration of the entire airline business in the hands of a single group. " Foreign carriers' offers are more comprehensive and strategic, as they plan to take advantage of Malaysia's strategic location for their operations." the source told Reuters.
According to leaks, however, the Khazanah sovereign wealth fund is more favourable to an agreement with AirAsia.
None of the names circulating has denied or refuted reports of a possible interest in MAS, but the fact that Khazanah decided on Friday to file a complaint for unauthorised disclosure of documents would confirm that it is indeed considering selling MAS to AirAsia. The sovereign wealth fund is putting pressure on the government for this solution, which is finding favour with public opinion, which is very opposed to the sale of Malaysia's aviation flagship to foreigners... The government hopes to finalise the choice of an investor this quarter.
