According to the letter, the aviation group was experiencing “an average monthly operating cash burn of US$84 million ($114.5 million)” but only had US$88 million in liquidity as of Aug. 31 and an additional $139 million available from Khazanah, its sole shareholder.
Malaysia Aviation Group, the holding company for Malaysia Airlines Bhd, said in a letter to lessors the group is unlikely to be able to make payments owed after November unless it receives more funding from state fund Khazanah.
The letter, reviewed by Reuters, follows a request by the troubled carrier for steep discounts on aircraft rentals from its lessors as part of a broad restructuring plan, three sources with knowledge of the matter said.
