Malaysia to overhaul national airline

KUALA LUMPUR, Malaysia – Malaysia’s state investment company said Friday it plans to make Malaysia Airlines fully government owned, removing it from the country’s stock exchange before carrying out an overhaul of the carrier that is reeling from double disasters.

Khazanah Nasional, which owns 69 percent of Malaysia Airlines, said it has proposed to the carrier’s board that it buy out minority shareholders at 27 sen (8 cents) a share, which is 29 percent higher than the airline’s average share price over the previous three months. The takeover would cost 1.38 billion ringgit ($429 million).

Malaysia Airlines has been hit by two major disasters this year, which added to its longstanding financial woes. In March, Flight 370 from Kuala Lumpur to Beijing disappeared with 239 people on board after flying far of course. The plane has still not been found.