Navigation

Swissair looking to buy stake in Malaysian carrier

Malaysia Airlines boss, Tajudin Mahmood (right), hinted that Swissair was interested in buying a 29 per cent stake Keystone

The Swiss national carrier, Swissair, has confirmed that it wants to buy a stake in the loss-making Malaysia Airlines.

This content was published on December 12, 2000 - 08:41

The company had said it was interested in a "strategic partnership" with the Malaysian carrier, but Swissair officials confirmed on Monday that their interest goes beyond existing mutual cooperation.

"I can confirm we have asked the [Malaysian] government and the airline to be considered a possible strategic equity partner," said Swissair spokesman, Jean-Claude Donzel.

He added that Swissair's parent company, SAirGroup, intended to conduct a due diligence procedure once it gets the necessary financial data. The Malaysian carrier ran up losses of $184 million (SFr314 million) in the last fiscal year.

Analysts are sceptical that the deal will materialise for Swissair. Britta Simon of Bank Sarasin was quoted as saying: "It would be good in that Swissair would have an Asian partner, but [Malaysia Airlines] is loss-making and the SAirGroup has enough restructuring to do in Europe."

Swissair's move follows reports that a Malaysian tycoon, Tajudin Ramli, had sold a 29 per cent controlling stake in the airline to the government in Kuala Lumpur. It is now expected to sell a large stake in the airline to a foreign partner.

Tajudin said last week that Swissair, KLM and Qantas Airways were all interested in buying a stake.

swissinfo with agencies

This article was automatically imported from our old content management system. If you see any display errors, please let us know: community-feedback@swissinfo.ch

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

Share this story

Change your password

Do you really want to delete your profile?