The plan will also require a fresh cash injection from the airline's shareholder, state fund Khazanah Nasional, to help the company over the next 18 months.Lessors claiming to represent 70 per cent of the airplanes and engines leased to the airline group have called the plan"inappropriate and fatally flawed" and pledged to challenge it, according to people familiar with the matter and a letter from a London law firm seen by Reuters.
MAG had earlier warned lessors that Khazanah would stop funding the group and force it into a winding down process if the restructuring plans fail. Mr Izham said the lessors would need to make a decision by Oct 11, so the airline can decide whether to proceed with its restructuring plan or"execute Plan B".
Mr Izham said Plan B could involve shifting Malaysia Airlines' air operator's certificate to a new airline under a different name, or leveraging on the AOCs of sister airlines Firefly and MASwings.REUTERSFor daily updates on weekdays and specially selected content for the weekend. Subscribe to