According to Acting Transport Minister Datuk Seri Hishamuddin Hussein, the Federal Government is not planning to bail out Malaysia Airlines (MAS) after the carrier sunk deeper into financial woes following the disappearance of Flight MH370 and years of quarterly losses.
MAS posted a net loss of RM443.4 million in the first quarter of this year, compared to a net loss of RM278.8 million in the same period last year, in what is the airline’s worst quarterly showing in the last two years.
“Is the Malaysian government offering an assistance to MAS? No,” Hishammuddin told a news conference on Flight MH370, which has been missing since March 8, The Malay Mail Online reports.
MAS, in a statement delivered to Bursa Malaysia stock exchange, said, “The tragic MH370 incident had a dramatic impact on the traditionally weak first quarter performance.” The airline added that it has been hit with high cancellation rates and a drop in long-haul flights after Flight MH370 disappeared.
Ticket sales in China also fell by a staggering 60% in March – unsurprising, as 153 of the 227 passengers onboard Flight MH370, which was en route from Kuala Lumpur to Beijing when it disappeared, were Chinese nationals.
Malaysia Airlines has consistently been reporting quarterly losses for the past three years, due to increasing costs and tight competition.
See Also:
Malaysia Airlines might need a government bailout
Bloomberg says MH370 might break Malaysia Airlines for good
Malaysia Airlines might sell its engineering arm
Photo: Achmed Azizie / Flickr
