Malaysia Airlines group low on cash, big discounts from lessors sought

According to the letter seen by Reuters, the aviation group is experiencing "an average monthly operating cash burn of $84 million" but only had $88 million in liquidity as of Aug. 31 and an additional $139 million available from Khazanah.

SINGAPORE: Malaysia Aviation Group, the holding company for Malaysia Airlines Bhd, said in a letter to lessors the group is unlikely to be able to make payments owed after November unless it receives more funding from state fund Khazanah.

The letter, reviewed by Reuters, follows a request by the troubled carrier for steep discounts on aircraft rentals from its lessors as part of a broad restructuring plan, three sources with knowledge of the matter said.