Air France, Delta Air Lines, Lufthansa, United Airlines, Qantas and British Airways have all been associated with potential bids for THAI, although privately officials from these airlines have voiced reservations regarding the size of the stake available. With MAS, the main contenders have been Qantas, KLM Royal Dutch Airlines and Swissair's parent, the SAirGroup. Bangkok and Kuala Lumpur are two interesting hubs. Therefore we are interested in developing our partnerships with various Far East carriers, MAS being one of them. The Malaysian state welcomes our interest.
Discussions are ongoing.
However, it is understood Qantas is no longer interested in equity, although it is keen on some form of commercial relationship. SIA has been moving increasingly into Qantas's backyard and MAS could offer a vehicle for Qantas to counter any perceived pressure. However, the real cost of any deal is complicated because Qantas pulled out of Malaysia in 1998, which limits the synergies that can be realised. MAS has developed into something of a fiscal basket case. In the end he got a good deal thanks to an agreement he struck with the government when he bought into MAS in 1994.