Struggling flag carrier Malaysia Airlines’ previous attempt to turn itself round collided with low-cost local rival AirAsia Group’s rise. Now, both companies have run into the same turbulence.
Malaysia Airlines, which has yet to recover from two 2014 tragedies that made global headlines, faces a growing risk of being forced to halt flights unless it secures aid. But the state has frowned on the idea of another bailout.
A group of creditors recently rejected a proposal by Malaysia Airlines to restructure its RM16bn ($3.85bn) in liabilities. This comes after the company made deep pay cuts for management and pilots, while putting staff on unpaid furloughs to reduce costs as the coronavirus pandemic paralysed global air travel.
The disruption has also clouded the prospects for leaner AirAsia Group, which together with the flag carrier holds a majority market share in…