Malaysia Airlines restructuring talks prolonged, CEO tells staff

Malaysia’s national airline is seeking to restructure its business after the coronavirus pandemic forced it to slash its operations. (AFP)
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Updated 17 October 2020

Malaysia Airlines restructuring talks prolonged, CEO tells staff

  • Malaysia’s national airline is seeking to restructure its business after the coronavirus pandemic forced it to slash its operations

SINGAPORE: Malaysia Airlines’ parent firm is still holding negotiations with lessors and creditors over a restructuring plan to keep the airline afloat, but the talks are taking “longer than expected,” according to a staff memo seen by Reuters.
“The negotiations are still ongoing and taking longer than the planned timeline, but we are gaining encouraging traction from the lessors and creditors thus far,” Izham Ismail, CEO of Malaysia Airlines and group CEO of parent firm Malaysia Aviation Group, said in a memo to staff on Oct 16.
In response to a Reuters query, Malaysia Aviation Group, owned by state fund Khazanah, said in an email on Saturday that it is “continuing discussions with creditors on its ongoing restructuring exercise.”
Malaysia’s national airline is seeking to restructure its business after the coronavirus pandemic forced it to slash its operations.
Reuters reported last week that a group of lessors had rejected the restructuring plan that involved steep discounts, bringing the carrier closer to a showdown over its future.
In the memo to staff, Ismail assured them that Malaysian Aviation Group’s restructuring exercise “is still work in progress.”


China aims for sustained and healthy economic development

Updated 30 October 2020

China aims for sustained and healthy economic development

  • Beijing to let market forces play decisive role in resources allocation, report says

BEIJING: China is targeting sustained and healthy economic development in the five years to 2025, with an emphasis on a higher quality of growth, the Xinhua news agency said on Thursday, citing the ruling Communist Party’s Central Committee.

President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors from Monday to lay out the 14th five-year plan, a blueprint for economic and social development.

China’s external environment “is getting more complicated,” the agency said, adding, “There is a significant increase in instabilities and uncertainties.”

BACKGROUND

China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

However, the country’s development was still in a period of important strategic opportunities, despite new challenges, it said.

It added that China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

China will also deepen reforms and let market forces play a decisive role in resources allocation, the agency said.

China will promote a “dual circulation” model, make self-sufficiency in technology a strategic pillar for development, move to develop and urbanize regions, and combine efforts to expand domestic demand with supply-side reforms, it added.

The “dual circulation” strategy, first proposed by Xi in May, envisages that China’s next phase of development will depend mainly on “domestic circulation” or an internal cycle of production, distribution and consumption, backed by domestic technological innovation.