MALAYSIA Airlines (MAS) announced yesterday that it had received RM1bil in proceeds from the sale of its properties at the KLIA Complex from Asset Global Network Sdn Bhd (AGN), a wholly-owned subsidiary of Minister of Finance Inc.
Sources said MAS would use the money to repay short-term loans and for operating expenditure.
MAS has also embarked on an exercise to upgrade its aircraft cabins, installing sleepers in some of the long-haul planes. The upgrade is estimated to cost RM700mil, and it is highly likely that MAS would use part of the proceeds for this purpose.
MAS had last July announced it would sell RM1.48bil worth of properties at the KLIA Complex and Subang airport, and its Kelana Jaya Complex and head office in Kuala Lumpur as part of its reorganisation.
The properties were to be sold to AGN and leased back for periods ranging from 43 to 57 years.
However, MAS announced last week that it had decided not to sell its headquarters in Kuala Lumpur and the Kelana Jaya Complex which are worth RM236mil in total.
The sale of properties worth RM233mil at Subang has yet to be concluded.
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