Air France–KLM S.A., one of the leading global air transport players, has reportedly made a proposal to invest in Malaysia Airlines and gain around 49 percent stake. Japan Airlines (JAL) is also looking to acquire a 25 percent stake in Malaysia Airlines, while AirAsia and Malindo Air have made proposals.

Sources cite that Air France-KLM has offered a proposition to set up hub for repair, maintenance, and overhaul services in Malaysia, while JAL has proposed to make South-east Asia its regional hub, including offering low-fare flights.

According to sources, the government of Malaysia found foreign airlines proposals to be more attractive, however, the sovereign wealth fund which owns Malaysia Airlines prefers making a deal with AirAsia.

Apparently, the bids offered by both foreign airlines are more strategic and comprehensive as they plan to make benefit from the strategic location of Malaysia for their operations.

For the record, Malaysia Airlines has struggled to recuperate from two tragedies in 2014 – the shooting down of flight MH17 over eastern Ukraine and disappearance of flight MH370. That year, it was taken private by Khazanah Nasional Berhad, sovereign wealth fund of the Malaysian government, which paid S$465 million for the 30% of stakes it did not own.

Khazanah, which appointed Morgan Stanley to advise on probable options for the airline, said that they are working with the government. Meanwhile, Mahathir Mohamad, Prime Minister of Malaysia, said that five proposals have been obtained as part of a review that began last year.  

Reportedly, Malaysia Airlines has recently inked a joint venture deal with JAL covering flights between Japan and Malaysia which the Japanese airlines said could be extended to cover US flights in the future. The two firms are participants of the Oneworld airline alliance, whereas Air France-KLM is associated with the rival SkyTeam alliance.
 

Source Credit - https://www.straitstimes.com/asia/se-asia/air-france-klm-proposes-buying-49-per-cent-of-malaysia-airlines-jal-seeks-smaller-stake