Malaysia Airlines accelerates restructure, Jet Airways raising funds, JAL defer American/Delta talks
Malaysia Airlines’ (MAS) new Managing Director & CEO, Tengku Datuk Azmil Zahruddin, has accelerated the airline's Business Transformation Plan introduced by predecessor, Idris Jala, in response to difficult operating conditions.
Tengku Azmil stated MAS aims to return to operational profitability next year after a “tough” 2009. The airline will keep capacity growth flat in 2010, but is standing by the delivery of 35 B737-800s from 4Q2010 and six A380s from 2011.
Malaysia Airlines’ shares rose 1.4% on Monday
Japan Airlines (JAL) has reportedly deferred talks with Delta Air Lines and American Airlines over possible equity investments, to focus on developing a restructuring plan with a government-backed task force, according to the Kyodo newspaper.
The move, if confirmed, would suggest the heavily indebted and loss-making JAL has gained some reassurances the government will guarantee the carrier’s funding arrangements at least until the end of the current financial year (to 31-Mar-2010).
JAL’s shares eased 1.5% on Monday.
Jet Airways funding plan to be considered
Meanwhile, Jet Airways’ shares surged 12.9% on Monday, as the airline announced its plans to raise funds from international institutional investors will be considered by the Foreign Investment Promotion Board this week.
Asia Pacific selected airlines daily share price movements (% change): 05-Oct-09