Malaysian Airline Needs State Rescue as Cash Falls: Asean Credit

Malaysia is expected to rescue its flagship carrier with a fourth capital infusion since bailing out the airline after two tragedies and record cash burn, analysts at two of the nation’s biggest lenders said.

Parent company Khazanah Nasional Bhd. needs to spend at least 2 billion ringgit ($629 million) to take Malaysian Airline System Bhd. private and replenish its working capital within the next 12 months, according to estimates by Hong Leong Investment Bank Bhd. and RHB Capital Bhd. The sovereign wealth fund has spent almost 5 billion ringgit in three cash calls since its unit Penerbangan Malaysia Bhd. first rescued the carrier in November 2002.