Proposals to invest in ailing Malaysia Airlines include one from Air France-KLM ...
FILE PHOTO: Malaysia Airlines planes are pictured at Kuala Lumpur International Airport in Sepang, Malaysia, July 22, 2019. REUTERS/Lim Huey Teng
“The bids from the foreign carriers are more comprehensive and strategic as both plan to capitalize on the strategic location of Malaysia for their operations,” said the source. The sources declined to be identified as the discussions are confidential. Representatives for Air France-KLM, AirAsia and Malindo did not immediately respond to requests for comment.
There is no official timeline for a deal, but one source has said the government wants to get an investor finalised this quarter.Malaysia Airlines last year signed a joint venture agreement with JAL covering flights between Malaysia and Japan, which the Japanese airline said could be expanded in the future to cover U.S. flights.
“An international solution is probably better in this situation as AirAsia would have competition concerns,” one of the sources said. It also said AirAsia boss Tony Fernandes had proposed a three-way merger between the company, its long-haul unit AirAsia X and Malaysia Airlines.
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