Cash-strapped Malaysian Airlines could receive 850 million ringitt from its parent company and the government to finance severance packages for employees and cover potential losses from asset sales, a news report said Thursday.
State-owned Penerbangan Malaysia Bhd., which holds a 69% stake in the airline, will contribute MYR650 million, Malaysian Airline System Bhd. Managing Director Idris Jala was quoted as saying by the Business Times daily.
The rest of the funds will come from the government, Idris was quoted as saying.
Malaysia Airlines officials were not immediately available to confirm the report.
“This means that the government will give us up to 200 million ringitt to cover losses, that is if we have to sell our assets below their book value,” he said.