Etihad denies MAS takeover rumours

TD Guest Writer

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Malaysia Airlines has suffered three consecutive full-year losses
Malaysia Airlines has suffered three consecutive full-year losses

Etihad Airways has issued a statement denying it is planning to buy a stake in Malaysia Airlines.

The Abu Dhabi-based carrier is currently in the process of finalising a deal with Alitalia, to complement its existing stable of global equity stakes. But reports that it could be about to invest in MAS appear wide of the mark.

“Etihad Airways would like to confirm that it is not in talks with Malaysia Airlines about the possibility of an equity investment in the carrier,” the airline said in a brief statement today.

MAS is currently state-owned, under the Penerbangan Malaysia Berhad company, but there have been reports in recent months that the Malaysian government could be willing to privatise the national carrier.

And in an aviation presentation in Bali last week, Peter Harbison of the Sydney-based Centre for Asia Pacific Aviation (CAPA) hinted that Etihad could be lining up an investment.

MAS has suffered three consecutive annual losses totalling more than MYR4 billion (US$1.2bn), and sank to a MYR443 million net loss in the first quarter of 2014.

Etihad currently holds equity stakes in Aer Lingus, airberlin, Air Seychelles, Virgin Australia, Jet Airways, Air Serbia and Darwin Airline, which it has rebranded as Etihad Regional.

Klook.com

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