Sing Yew

RM 7 for a pack of 2 sounds reasonable.

My family and I would use it almost all the time to connect to Intl flights. My last IPH - KUL was in July 2006. The route was canned not long after during the route rationalisation project. For a short 35 mins flight, MH charged RM100 IIRC.

KUL - AK's strong hold now. 5 vs 1 indeed.

First airlines plying the route to bite the dust. Anymore following suit ? I wonder. Overcapacity amongst the airlines perhap ?

It does looks like it to me too. Raymund, those food pics look good. Tastes just as good too ?

From the horse's mouth. StarBiz 15th August 2009

From their Results presentation's slides: Objective of Capital Raising and Timeline Address investor’s concern over our high gearing ratio – it was the single largest concern of the investment community – remove share overhang Improve balance sheet liquidity – build up our “war chest” to fend off market adversities – to enable us to capture opportunities quickly as and when they arise The capital raised may be used for the following (up to 20% of issued capital):- - repay part of Company’s borrowings - working capital requirements

From AirAsia's website:

Good to know that they are actually turning in an Operating Profit and not profit from hedging gains etc. RM'000 Revenue 657,444 Cost of Sales (312,487) Gross profit from operations 344,957 Other operating expenses (35,526) Other income 13,414 Profit from operations 322,845 Net finance (cost)/income (76,618 Depreciation and amortisation (101,828) Exceptional item (6,238) Profit before taxation 138,161 Current taxation (120) Deferred taxation 1,135 Profit after taxation 139,178

Well it's all about bringing the Malaysian Hospitality experience to more cities in the Middle East. Yup. It's what Idris Jala would call 'divine intervention', oil price rising thus rendering those hedges effective resulting in hedging gains. So if the trend (rising fuel prices) continues they can be hopeful that the hedging gains will cover for their operating losses. Needless to say, it's probably not a sustainable way of to be 'profitable'.

An excerpt from the article in today's Star Biz: In a filing to Bursa Malaysia yesterday, MAS said if it had not adopted the FRS 139, its operating revenue would have been RM2.49bil and a net loss of RM803.7mil for the second quarter. MAS would have posted a net loss of RM1.59bil for the first six months ended June 30 on revenue of RM5.19bil if it had not adopted the FRS 139. I guess they would now be thanking their lucky stars for having adopted FRS 139 early.

Bear in mind that these are unaudited figures. And IF oil prices crash again, there's a possibility that they may be reporting a fuel hedging loss in future quarters.

Well let's just say oil prices went back up again and now those fuel hedges they made back then are now rendered effective. Doubt they'll now go around and sing praises of FRS 139 as they did previously by putting the blame on FRS 139 back in Q1. Income Statement Q2 FY 09 Q2 FY08 RM’000 RM’000 Operating revenue 2,495,444 3,657,738 Operating expenses (2,985,918) (3,712,083) Other operating income 69,660 115,921 Gains on sale of properties - 453 (Loss)/Profit from operations (420,814) 62,029 Derivative gain 1,340,500 - Finance costs (22,294) (6,864) Share of results fr associated companies(677) 5,805 Profit before taxation 896,715 60,970 Taxation (20,457) (20,992) Profit for the period 876,258 39,978 Attributable to: Equity holders of the Company 875,513 39,978 Minority Interest 745 - Profit for the period 876,258 39,978 Earnings per share attributable to equity holders of the Company Basic (sen) 52.39 2.39 Diluted (sen) 49.68 2.25 Balance Sheet Q2 FY 09 Q2 FY08 RM’000 RM’000 Non current assets Aircraft, property, plant and equipment 2,850,447 2,464,823 Investment in associated companies 76,253 73,268 Other investments 55,210 64,946 Negotiable instruments of deposit 100,000 250,000 Prepaid Lease 198,438 219,854 Intangible assets 105,277 106,253 Other assets 243,132 213,092 Deferred tax assets 2,657 1,348 3,631,414 3,393,584 Current assets Inventories 366,357 379,730 Trade and other receivables 1,644,246 1,931,539 Negotiable instruments of deposit 704,846 795,000 Cash and bank balances 2,133,076 3,571,743 4,848,525 6,678,012 Current liabilities Trade and other payables 2,391,924 2,408,825 Provision 878,199 817,703 Short term borrowings 1,021,018 425,000 Short term borrowing (finance lease liability) 21,279 8,411 Provision for taxation 11,278 5,001 Derivative financial instruments 832,990 - Sales in advance of carriage 1,446,514 1,222,410 6,603,202 4,887,350 Net current (liabilities)/assets (1,754,677) 1,790,662 1,876,737 5,184,246 Equity attributable to equity holders of the Company 419,806 4,185,698 Share capital - ordinary shares 1,671,062 1,671,002 Redeemable Convertible Preference Shares (RCPS) 58,076 58,076 Reserves Share premium 4,007,629 4,007,446 Reserve 583,507 577,732 Accumulated losses (5,900,468) (2,128,558) Minority interest 12,615 11,278 Total equity 432,421 4,196,976 SEGMENTAL INFORMATION By Business Activities Operating Operating Revenue Profit/(Loss) RM '000 RM '000 Airline operations 2,288,532 (362,640) Cargo services 380,122 (48,343) Catering services 3,365 1,209 Others 19,372 1,514 2,691,390 (408,260) Eliminations (195,946) ( 12,554) Total 2,495,444 (420,814) Notes to the Financial Statements that may be of interest to some of you: Note 1: REVIEW OF PERFORMANCE The Group recorded an operating loss of RM420.8 million for the second quarter ended 30 June 2009 (Quarter ended 30 June 2008: RM62.0 million profit) mainly due to lower operating revenue in line with the declining trend in global travel and cargo movements resulting from the current economic downturn. The Group recorded a profit after tax of RM876.2 million (Quarter ended 30 June 2008: RM40.0 million profit) after including derivative gain of RM1,340.5 million. Note 2: COMPARISON WITH PRECEDING QUARTER'S RESULTS The Group recorded higher operating loss for the quarter of RM420.8 million compared to loss of RM137.9 million in previous quarter mainly due to a lower operating revenue in line with declining trend in global travel and cargo movements resulting from the current economic downturn. However, the Group recorded a profit after tax for the quarter of RM876.2 million from a loss of RM694.8 million in previous quarter after including derivative gain of RM1,340.5 million. Note 4: CURRENT YEAR PROSPECTS The International Air Transport Association forecasts that airlines would lose USD9 billion in 2009, which is nearly double its March estimate despite the fall in the oil price. Demand is projected to fall sharply with passenger traffic expected to contract by 8% and cargo demand expected to decline by 17%. The airline industry is being hard hit by the global credit crisis, with the worst economic downturn since The Great Depression in the 1930s. This is further compounded by the outbreak of the Influenza A (H1N1) virus. Whilst airlines have tried to reduce capacity in tandem with contracting demand, the overcapacity has caused heavy fare discounting. The outlook for the third quarter 2009 is expected to remain soft. While there are some signs of improving economic climate, the airline industry is still faced with weak demand and downward pressure on yields. The operating environment remains volatile with the H1N1 "pandemic" impacting travellers' confidence. To overcome the soft demand and adverse competitive environment, MAS continues to fast track the implementation of its Business Transformation Plan ("BTP 2"). The airline has aggressively pushed sales by offering various fare promotions ranging from Everyday Low Fares, Get MAS Deals and the MAS Stimulus Package which offers 9 fare options covering all classes of travel. In addition, it has launched innovative travel options such as Business First which allows customers to be upgraded to First Class while paying business class fares. Customers who purchase Economy Plus fares will enjoy business class travel privileges. For 2009, the Group's targets are: RM499 million loss - RM50 million net income (on target), RM51 million - RM500 million (exceeding) and RM501 million - RM 1 billion (outstanding). Note 11: Financial Instruments As a result of early adoption of FRS 139: Financial Instruments, Recognition and Measurement, fuel hedging contracts, interest rate hedging and foreign currency hedging contracts which were previously classified as off balance sheet financial instruments have now been recognised in the balance sheet as derivative financial instruments. As at 31 July 2009, the Group has entered into various fuel hedging contracts for periods up to 31 December 2011 in lots totalling 20,493,984 barrels. The fuel hedging programme is closely monitored and is subject to the vagaries of the market such as geopolitical events, the economic situation and weather conditions. As at 31 July 2009 the Group has entered into various interest rate hedging contract transactions for periods up to 13 December 2016 for a total notional amount of RM2,314 million. The fixed interest rates relating to interest rate hedging contracts as at 15 July 2009 vary from 2.15% to 5.00% per annum. As at 31 July 2009, the Group has entered into foreign currency hedging contracts and options for a total notional amount of RM1,445 million for periods up to 15 July 2010.

By tagging some of their flights via CGK perhaps.

Looks like they've turned in a profit for Q2 thanks to fuel hedging gains. Operating loss of RM 421 mil though. From The Edge Daily:

Well Malaysia Airlines Travel does that on Facebook no ??

Weblink Sale starts tomorrow.

Yes they do. From Bangkok to Yangon.

ABM ?? What's that ? If that's true, even if they get the exemption/waiver and thus a reduction in operating expenses which gives them 'profit' those are not operating profit. What's more important and what matters the most would be operating profit, you may be getting a 'lifeline' from the powers that be and that may help you boost your profit figure but then they are not operating profit. If that is the only way an organisation can report a 'profit' and not a loss figure i.e. via proceeds from disposal of assets and via operating expenses reduction in the form of waivers/exemptions, this brings to question how viable is this business in the long run ? Those fuel hedging losses they claim that other airlines have been burnt as well which is true but what is more important is that going forward what actions will they take to ensure that they have a more competent, efficient and accountable Treasury Management team (do they have one ? - I really hope they do) so that in future occasion the same thing happens again, we know who shall be held accountable for. By then there will be no Financial Reporting Standards for them to put the blame on.

Yet another flight where Nasi Lemak is being served and for supper no less. LSG SkyChefs should achieve economies of scale in mass producing nasi lemaks by now.

GA will also have a friendlier arrival time into CGK as compared to MH's 0400 arrival time. GA 716 CGK - MEL Dep 2215 Arr 0725 GA 717 MEL - CGK Dep 0955 Arr 1400

Hmmm.....that was almost exactly the same meal I got on MH 129 KUL - MEL on the 21st of June albeit on a meal tray. Replace the pink guava juice with orange juice and throw in an extra warm bread roll and butter and there you have it. The new box looks like those cartons that they use to store those 'Omega 3 Eggs' that are sold at the supermarkets/hypermarkets in Malaysia.

ADL perhaps ? I did recall reading from somewhere that ADL was potentially on of the destinations that may be canned. Loads were usually very good whenever I flew on MH 139/138, including GCCL. CX flies into ADL daily but goes via MEL on the way back to HKG, SQ flies into ADL daily as well. Whilst MH does 4x weekly.

Or perhaps the prefer flying with airlins with 'hidden stars'. Ironically SQ and TG are part of the Star Alliance.

For MH, sub-class H gives you 70% Enrich miles whilst sub-class M gives you 100% Enrich miles. So, technically speaking sub-class M would cost more than sub-class H.