Mahathir floats possible MAS sale again

Mahathir floats possible MAS sale again

25 years after selling MAS and buying it back in a controversial deal, prime minister says the days of a national flag-carrier are over.

Reuters pic.
KUALA LUMPUR:
The prime minister, Dr Mahathir Mohamad, has again raised the possibility of the national carrier, Malaysia Airlines, going into private hands instead of being government-owned.

In an interview published in the MAS in-flight magazine Going Places, Mahathir said the days of a national airline for every country were over. Malaysia could still have a national airline but it did not necessarily have to be owned by the government, he said.

“Now you can have a number of airlines. One of those can be called a national airline because it carries the symbol (of the nation) but it can be operated by the private sector,” he was quoted as saying.

Malaysia Airlines is currently owned by the government’s investment arm, Khazanah Nasional, through Malaysia Airlines Berhad.

MAS had previously gone into private hands in 1994 during Mahathir’s first government. It was controversially bought back by the government seven years later at the same price of RM8 a share originally paid by businessman Tajuddin Ramli, despite massive losses and although the share price was trading at a lower value on the stock exchange.

The question of selling off MAS because of its financial problems has been raised in recent months, with Mahathir telling the Dewan Rakyat in July that the government was open to either a complete takeover with a change in the name of the airline, or an acquisition of the airline.

The sale and repurchase of MAS two decades ago raised a storm of protest. Two years after the government bought back the airline, MAS filed police reports against Tajuddin, alleging that he caused the airline to suffer losses of more than RM8 billion. However, in 2011, the government directed all suits against Tajuddin to be withdrawn.

In the interview with Going Places, Mahathir recalled that he had always flown with Malaysia Airlines in the past and had enjoyed the airline’s cuisine. “The food was good, and of course, being the prime minister, I get to fly in First Class,” he said.

He also spoke about tourism, saying there was a need to reduce the numerous bureaucratic procedures.

He also questioned the attitude of Malaysians. “We find that in some countries people are always smiling, they are very welcoming to tourists, but sometimes, Malaysians don’t behave like that,” Mahathir observed.

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