Malaysian Airline stocks fell sharply in 16 years

Malaysian Airline stocks fell sharply in 16 years

Sinar Harian newspaper quoted Chairman of the Finance Committee of Malaysia – Jazlan Mohamed Nur said the government should sell its stake in the airline . Prime Minister Najib Razak said last week in the Wall Street Journal that they can give Malaysia Airlines bankruptcy to implement the restructuring .

“People believe that at this point , the government will not further relief as before . Malaysia Airlines is the closest possible bankruptcy ” , Mohshin Aziz – analyst at Malayan Banking said . The company invested by the Government – Khazanah Nasional holds 69.4 % stake in it .
Malaysian Airline stocks

Malaysia Airlines is capable of bankruptcy . Photo: Bloomberg

Malaysia Airlines shares fell 18 % to a record low of 15.5 sen ( 5 cents ) this afternoon . This is the largest decline since the Asian financial crisis occurred . Company shares have lost 60 % in the past year , while the FTSE Bursa Malaysia KLCI on the Malaysian stock exchange rose 6.7 % .

Last week , the company said the disappearance of the aircraft number MH370 has weighed on its business activities . This has forced them to reconsider emergency notification plan after the biggest quarterly loss since 2011. Accordingly , the first quarter of this year , Malaysia Airlines loss 443 million ringgit ( $ 138 million ) .

Malaysian Air has been grappling with the situation of fierce competition and rising costs even before the events of the missing plane . Malaysian market is flooded with competitors such as cheap airline AirAsia , which increases air volume and reduced fares .

Since early 2011 , Malaysia Airlines has a total loss of 4.57 billion ringgit . Last year , they did not achieve the target rate by fuel prices , maintenance and financing costs . This year , the company also predicted difficulty due to unfavorable exchange rates .

Malaysian Airline stocks fell sharply in 16 years
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