Malaysia Airlines Shares Soar on Privatisation Plans After Missing Flight MH370 Mystery

Malaysian Airlines' shares soared by nearly 17% on 3 July after reports circulated that the state-owned group was mulling over being bought out by private companies.

The MAS stock rocketed by the largest amount in just over two weeks to eventually hover around 12% at 0.230 Malaysian ringgit.

According to sources, cited by Reuters, Malaysian state investor Khazanah Nasional is looking to privatise the airline, in a bid to save the ailing group, following the disappearance of its Flight MH370 and years and of battered profits.

The sources also say that by privatising the airline, investors would be able to cut headcount, focus on installing a new management team and sell off some of its lucrative engineering capabilities.

Apparently, Khazanah's board, chaired by Prime Minister Najib Razak, will meet by the end of the month to discuss privatisation plans.

MAS representatives were not immediately available for comment.

MAS posted its worst quarterly loss in over two years recently, after passengers kept away from the company following the unexplained disappearance of flight MH370 two months ago.

The aviation firm's losses reached £82.2m ($138m, €101m) in the quarter ending 31 March, almost £30m more than the same period last year and its worst loss since the quarter ending 31 December, 2011.

Passengers in Asia have taken their custom elsewhere following the unfortunate event; passenger numbers were down 60% for the airline.