KUALA LUMPUR: Khazanah Nasional Berhad said that it will disburse up to RM1.6 billion in its second phase of the restructuring of national flag carrier Malaysian Airlines System Berhad.
The injection of RM1.6 billion over the next three months into Malaysia Airlines (MAS) is the second phase of its conditional investments totalling RM6 billion to completely overhaul the national carrier.
In a statement today, the national sovereign fund said that the condition for the disbursement is dependent on the delivery of several key milestones that include the approval of a NewCo business plan by Khazanah and the MAS Board of Directors, a corporate governance review, implementation of talent selection process as well as talent management and development programmes, and financial and operational targets.
Khazanah also said that the migration of staff from Subang to Kuala Lumpur International Airport will begin in May, and the Corporate Development Centre is set to begin operations in April 1.
Renegotiations of selected contracts will continue and also novation (substitution of new legal obligation for old ones) of supply contracts that meet the NewCo’s requirements are underway.
More than 400 contracts have been identified under a comprehensive review of MAS’ contracts, the statement added, saying that MAS is now negotiating a new catering agreement based on international standards with Brahim’s Airline Catering Sdn Bhd with a target signing date of March 31.