Moratorium on transition of MAS to MAB extended


File pic of MAS aircraft at the KL International Airport.

KUALA LUMPUR: The administrator of Malaysian Airline System Bhd (MAS) has received approval from its stakeholders to extend the current moratorium on the transition of MAS to Malaysia Airlines Bhd (MAB) for a further 12 months until May 24, 2017, to enable the remaining tasks to be completed.

The Malaysian Airline System Bhd (Administration) Act 2015 (MAS Act) provides for the establishment of a new entity, Malaysia Airlines Bhd (MAB), with a new business model to replace MAS as the national carrier, as well as for an effective, efficient and seamless means to transition the business, property, rights, liabilities and affairs of MAS to MAB.

In a statement on Wednesday, Administrator Datuk Mohammad Faiz Azmi said as the discussions on the transition are complex, involving laws and tax implications across various jurisdictions, the stakeholders have approved the extension of the current moratorium.

"Because of these reasons and to achieve the best possible outcomes, we have sought and received approval for an extension of the current moratorium," he said.

Mohammad Faiz, who was appointed as the Administrator on May 25, 2015, said after a year of administration, selected assets and liabilities critical to MAB's airline operations have been transferred from MAS to MAB.

These include land and buildings, workshop facilities, offices, stations, aircraft and motor vehicles, as well as contracts for engineering services, legal services, fuel supply, catering, security, system support and working capital facilities.

He also reiterated the administration's priority of safeguarding the welfare of the next-of-kin of the victims of the ill-fated Malaysia Airlines Flights MH370 and MH17. - Bernama

Subscribe now for a chance to win your dream holiday!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Bursa Carbon Exchange holds country's first nature-based carbon credit auction
Affin Bank inks MoU to bolster SME growth in Sarawak
Capital A's passenger volume rises 11% in 2Q
SCIB secures RM162mil contract for civil servant housing programme in Perak
Ringgit strengthens further vs US$, touching 4.66
Bursa Malaysia stages mild pullback, CI down 0.37%
Nestle Malaysia posts lower 1H sales on cautious consumer spending
Aneka Jaringan returns to the black in 3Q
Betamek registers higher net profit of RM4.88mil in 1Q
IGB REIT records net profit of RM81.55mil, distributable income of 2.56/unit

Others Also Read