Kuala Lumpur: Golden Skies Venture Sdn Bhd (GSV), a special purpose vehicle that has recently place its formal bid to takeover Malaysia Airlines Bhd (MAS), is keen to rebuild the national carrier with a highly focused business model, strong network expansion and sizeable fleet.
Chief executive officer (CEO) Shahril Lamin said GSV intends to turn around MAS within three years after the takeover is completed, whilst rejuvenating the brand as a premium carrier.
GSV according to him, planned to bring in more widebody aircraft to join the national carrier’s existing fleet and help serve more new long-haul routes which would be captured through strategic partnerships with other international airline operators.
This includes major European and Asian destinations, as well as, reinstating several key destinations in the United States (US) such as New York and Los Angeles.
“All this while, MAS has not been very clear in what kind of service they are offering and had been cutting down on the routes they served. This has been one of the main reasons why the airline has been suffering.
“What we need to do now is to define MAS as a premium global national flag carrier,” he told Bernama, citing that GSV would also actively work with Civil Aviation Authority of Malaysia to get the US Federal Aviation Administration’s Category 1 rating reinstated at the soonest.
GSV was invited by MAS’ sole shareholder, Khazanah Nasional Bhd, to participate in its bid process in late January.
The bid was submitted within the set deadline to Morgan Stanley, a global investment bank hired by the government’s sovereign wealth fund to act as an independent adviser.
GSV deputy CEO, Ravindran Devagunam, said no further government funding is required as a total of US$2.5 billion (RM11 billion) would be injected by GSV to rejuvenate MAS/Malaysia Aviation Group.
He said that the funding requirements would be sourced from foreign banks’ financing as well as equity participation, citing several investors from Japan and the Middle East which are very keen to pursue the exercise.
The recent restrictions to global movement, however, has delayed the finalisation of equity participation.
“GSV will have management and operational control. We will also bring in a reputable aviation consultant to advise us, as well as invite selected global airlines to be our partners,” he said.
Ravindran said it is pivotal for GSV to have 100 per cent control over MAS as it would enable the company to push through the required changes effectively.
Of the total fund, he said some of the capital would be set aside for equipment (to be utilised over three years) and some allocation for the repayment of the airline’s full outstanding Sukuk.
Ravindran was the former chief operating officer of Hyderabad International Airport and former director at the Performance Management and Delivery Unit (Pemandu).
GSV is 80 per cent owned by Shahril, a lawyer with extensive exposure to aviation law and privatisation, while the remaining 20 per cent equity interest is held by the executive director and economist, Dr Puvanesvaran Sanjivee.
According to Puvanesvaran, the entire effort to rebuild MAS would be 51 per cent Bumiputera-led and that GSV commits to maintain the flag carrier status of MAS as well as the government’s golden share.
The company would also assist the government into rebuilding the airports, logistics, engineering, tourism, and hospitality ecosystem, he said.
“We want to be able to assist the government with the burden on the aviation industry especially in this climate (Covid-19 pandemic) that might cause possible lay-offs of valuable human capital.
“We can do a quick takeover of MAS and save the job of its over 13,000 employees,” he said while assuring there would be no pay-cut and retrenchment of the airline’s operational and frontline staff under GSV’s takeover proposal.
He also hinted that as GSV seeks to take over 100 per cent equity of MAG, which include MAS and other subsidiaries – MABkargo, MASwings, MAB Engineering and Firefly, extensive job opportunities would be created in line with the expansion plan. –Bernama
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