Malaysia Airlines Faces State Takeover

FILE - Children look at Malaysia Airlines Boeing 737-800 aircrafts parked at Kuala Lumpur International Airport.

Malaysia's state investment fund says it will pay nearly $436 million to take over troubled Malaysia Airlines, which lost two passenger jets this year.

Khazanah Nasional announced plans to restructure the airline after the carrier suspended trade in its stock Friday morning.

Khazanah, which already owns around 69 percent of Malaysia Airlines, says this will be the first step of a complete overhaul of the carrier.

Aviation industry analysts have said the struggling airline needs new investors and a substantial restructuring of its business.

On top of long-standing financial problems, the airline suffered two major disasters this year.

In March, Flight 370 carrying 239 people disappeared over the Indian Ocean and has still not been found. In July, 298 people were killed when Flight 17 was shot down over Ukraine in an area controlled by pro-Russian rebels.