Malaysia Airlines operator Malaysia Aviation Group (MAG) has received approval from the UK for a deal between its leasing unit and a majority of its aircraft operating lessors, enabling it to commence a restructuring plan with new capital of MYR3.6bn ($891m).

This capital is being injected by sovereign wealth fund Khazanah Nasional Bhd to finance the business until 2025.

According to MAG, the plan secured the unanimous support of relevant lessors and marks a key aspect of a wider restructuring to cut Malaysia Airlines’ liabilities of more than MYR15bn ($3.7bn).

Reuters quoted MAG as saying: “Now that the scheme has been formally sanctioned by the UK court, the airline can proceed to implement its restructuring plan with the support of its sole shareholder, Khazanah Nasional Bhd and existing stakeholders.”

As part of the restructuring, which is expected to conclude early next month, Malaysia Airlines will enter bilateral agreements with finance lessors, maintenance service providers, spare engine lessors, corporate lenders, and government-related entities.

The group is also planning to shift priorities on business segments and units to transform itself into a global travel group.

MAG chief executive Izham Ismail was quoted by the news agency as saying: “We seek to expand MAG’s involvement into other travel-related products and services beyond flights, which will go a long way in helping our customers complete their end-to-end travel experience.”

Since March last year, the carrier has undertaken various cost-cutting measures, including reducing salaries for management and pilots, offering unpaid leave, and payment deferrals to stay in business.

Meanwhile, International Airlines Group (IAG) also confirmed that British Airways has signed two financing agreements that will help increase total liquidity by £2.45bn.