Najib: Khazanah's RM6bil to MAS an investment, not a bailout

KUALA LUMPUR: Khazanah Nasional Bhd not only intends to recover every sen of the RM6bil investment into Malaysia Airlines (MAS), but wants to make money on the venture, said Datuk Seri Najib Tun Razak.

The Prime Minister, dismissing perception that the money pumped into the airline was a bailout, said Khazanah would be injecting the money to make MAS a viable organisation.

"This is not a bailout but an investment. Khazanah intends to recover every single sen of the RM6bil and more," he said after chairing the monthly Umno supreme council meeting Friday.

While recovering the investment might take some time, Najib said he was confident that MAS' turnaround could be reached in three years as planned.

Najib said the turnaround plan was based on several principles, which included it continuing to be the national carrier all Malaysians could be proud of.

He also said that Khazanah had experience in such exercises and had helped revive other companies such as UEM before.

"This overall restructuring is necessary for MAS as the airline industry is very competitive. Piecemeal changes will not be successful," he said after chairing the Umno supreme council meeting Friday.

Khazanah unveiled a 12-point plan for MAS to enable the airline to achieve sustained profitability within three years of de-listing by the end of 2017.

The plan, entitled "Rebuilding A National Icon: The MAS Recovery Plan" has four categories, namely governance and financial framework; operating business model; leadership and human capital as well as regulatory and enabling environment.