KUALA LUMPUR, July 24:

Speculation of Malaysian Airline System Bhd (MAS) being merged with a budget long haul carrier has been dismissed by Khazanah Nasional Bhd, which has a 69.4% stake in the ailing national carrier.

“Khazanah Nasional wishes to state that media reports of a possible merger between MAS and AirAsia X Bhd (AAX), are unfounded and speculative,” it said in a statement today.

“We also remind and urge all parties to not speculate on the restructuring of MAS, including potential mergers, de-listing and other restructuring options. As we have stated previously, a comprehensive review of all restructuring options is being undertaken and evaluated.

“The resolution of this review will be made after due consideration, and after respective approvals from the relevant parties and authorities, including the approval of the special shareholder, Minister of Finance, Incorporated.

“The outcome will be announced in due course, within the timeframe indicated previously.” Khazanah had earlier said the restructuring review may take up to six months and that had time to come up with a restructuring plan as the carrier has money to last about a year.