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Malaysian Airlines facing overhaul following proposed state takeover

Malaysian Airlines is set to undergo a “complete overhaul” after the Malaysian government announced it is preparing to take full control of the carrier following its second aircraft disaster this year.

Khazanah Nasional, the Malaysian state investment firm, said in a statement today that it has submitted a formal request to the board of directors of the airline to delist it from the stock exchange.

The carrier has been blighted by rising debt following the disappearance of flight MH370 five months ago and the recent crash of flight MH17 in Ukraine, prompting concerns about the carrier’s future.

Khazanah said that subject to necessary approvals it would announce the proposed restructuring scheme within a period of six to 12 months, which will include all of the airline’s operations, business model and finances.

It added that more details will be announced by the end of this month.

Malaysian Airlines posted a message to consumers on its website to "assure you that all our flights, schedules and reservations will operate as planned".

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