Malaysia Airlines desperately needs investors. Which carriers have made offers?

The airline has struggled to recover from two tragedies: the disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine

Malaysian Prime Minister Mahathir Mohamad said on Monday five proposals had been received as part of a review that started last year

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In 2014, Malaysia Airlines was taken private by sovereign wealth fund Khazanah Nasional. Photo: Reuters

Published: 5:00pm, 21 Jan 2020Updated: 5:31pm, 21 Jan 2020

Proposals to invest in ailing Malaysia Airlines include one from Air France-KLM which wants as much as 49 per cent while Japan Airlines is looking at a 25 per cent stake, sources with knowledge of the matter said.

Domestic carrier AirAsia Group and Malindo Air, the Malaysian arm of Indonesia’s Lion Air, have also submitted proposals, the sources said.

“The bids from the foreign carriers are more comprehensive and strategic as both plan to capitalise on the strategic location of Malaysia for their operations,” said one of the sources.

The Malaysian government has been seeking a strategic partner for its national airline, which has struggled to recover from two tragedies – the mysterious disappearance of flight MH370 and the shooting down of flight MH17 over eastern Ukraine.

In 2014, it was taken private by sovereign wealth fund Khazanah Nasional, which paid 1.4 billion ringgit (US$345 million) for the 3 per cent of shares it did not already own.

The sources declined to be identified as the discussions are confidential. Representatives for Air France-KLM, Japan Airlines (JAL), AirAsia and Malindo did not immediately respond to requests for comment.

Malaysian Prime Minister Mahathir Mohamad said on Monday five proposals had been received as part of a review that started last year but declined to name the suitors.