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.
According to the letter, the aviation group was experiencing “an average monthly operating cash burn of US$84 million ” but only had US$88 million in liquidity as of Aug 31 and an additional US$139 million available from Khazanah, its sole shareholder. Malaysia’s national airline has struggled to recover from two tragedies in 2014 — the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.
Bad times. Goverment must take care.
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