MASKargo hopes to see growth on heavy cargo traffic in Asia

[flee 5]

SEPANG: Malaysia Airlines Cargo Sdn Bhd (MASkargo), the cargo arm of Malaysia Airlines, hopes to see moderate volume growth of 5% to 8% this year, driven by stronger cargo movement within Asia.

 

Managing director Shahari Sulaiman said the growth could be expected since last year's volume grew by 12.8% from 2009 as business recovered to pre-crisis levels.

 

The company handled 605,468 tonnes through KL International Airport (KLIA) last year, which was about 85% of the optimal volume that its advanced cargo centre was designed for.

 

The centre was completed 12 years ago to handle 650,000 tonnes per annum.

 

MASkargo and German-based Lodige Industries Group yesterday signed a deal to enhance the former's material-handling control system in KLIA which will allow the cargo centre to handle one million tonnes per annum.

 

Lodige delivers complex air cargo handling systems to airline and freight forwarders.

 

Shahari said the upgrade would cost about RM100mil and would be completed in three years in five phases diagnosis, design and development, initial repair and modifications, IT system implementation, refurbishment and enhancement.

 

“The enhancement will replace obsolete technologies, improve machine operations and design out recurring faults. It will also redevelop the operational procedures to produce a fully integrated and efficient cargo-handling system that will be more reliable while driving down our operational cost,” he said.

 

He added that new capacity would help meet MASkargo's needs over the next 10 years.

 

Lodige president Dr Rudolph Loedige said MASkargo's one million tonnes per annum throughput would allow the company to join an exclusive group of 14 airlines globally, which include Cathay Pacific Airways, that provided such capacity.

 

MAS managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin, who witnessed the signing ceremony, said the deal would help MASkargo increase the efficiency and utilisation of its existing space through the adoption of new technology that would almost double its throughput.

 

Meanwhile, MASkargo plans to use A330 freighters to expand and grow its presence in Japan, China and India. The company will start taking delivery of its A330 in September and will receive all four by April next year.

 

“We only have B747 freighters (at the moment) and these planes offer too much capacity for some markets,” said Shahari, adding that the company would commence flights to Bangkok later this month.

 

Asked if MAS would look to increase its fuel surcharge given the rising oil prices, Tengku Azmil said the airline was closely monitoring the situation.

 

He added that there was no mechanistic jet-fuel price threshold that could be used as a benchmark by the airline to raise its surcharge.

 

“Higher fuel prices is not good for anyone except (oil) companies. We do have our hedge in place and the (oil price) levels are pretty close to where our hedge (price) is,” he said.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2011/2/1/business/7910471&sec=business

[Eugene Koh 4]

Based on MAS's CEO Twitter, then picture of their newly painted A332F looks absolutely boring, all white. Current livery looks bad enough although am getting used to it and slowly liking it. Why can't they paint their MASKArgo A332F like their passenger counterpart.. Can't imagine the day when they roll out the A380 in the new livery...

Edited June 25, 2011 by Eugene Koh

[Mohd Suhaimi Fariz 2]

Based on MAS's CEO Twitter, then picture of their newly painted A332F looks absolutely boring, all white. Current livery looks bad enough although am getting used to it and slowly liking it. Why can't they paint their MASKArgo A332F like their passenger counterpart.. Can't imagine the day when they roll out the A380 in the new livery...

 

MASkargo's in the process of applying for their own AOC so they can't use the same livery as the pax side.

[Gavin Andrew David 6]

They should go for silver bullet style

[BC Tam 2]

MASkargo's in the process of applying for their own AOC so they can't use the same livery as the pax side.

Is there such a restriction ? Peculiar to Malaysia ?

Those British Airways, Delta and United franchises flying about in similar looking liveries come to mind

[Mohd Suhaimi Fariz 2]

Is there such a restriction ? Peculiar to Malaysia ?

Those British Airways, Delta and United franchises flying about in similar looking liveries come to mind

 

I guess so. I was told by a friend who's in the department which dealt with govt. regulations.

[Waiping 12]

They should go for silver bullet style

 

[BC Tam 2]

They should go for silver bullet style

Isn't Airbus the one that is a bit particular about exposing too much bare metal on their products ?

Recall it raised some issues about warranties against corrosion when American Airlines wanted their A300's in their trademark 'polished metal' finish (yes, all those years ago !)

[Waiping 12]

Does anyone know when is the first B777F for MH to arrive KUL?

[Ignatius 4]

Bro, I don't think anyone knows at all because nobody seems to know of any such order <_>

[Mohd Suhaimi Fariz 2]

Does anyone know when is the first B777F for MH to arrive KUL?

 

Well unless they leased the 777F from Southern Air I don't think so!

[KC Sim 2]

Singapore Airlines Cargo is actually a separate company from Singapore Airlines and has its own ICAO code - SQC. But it retains the same livery as SIA and when the latter modified its livery, SIA Cargo followed suit with the bigger titles, bigger bird on the tail.

 

If there is indeed a regulation barring MASKargo from having a similar livery to MAS, it is interesting indeed.

 

KC Sim

[Waiping 12]

Sheesh, sorry. I mean the A330F.

[flee 5]

MASkargo Targets RM2.4 Billion Revenue Next Year

 

November 22, 2012 12:24 PM

 

By Prem Kumar Panjamorthy

 

KUALA LUMPUR, Nov 22 (Bernama) -- MASkargo Sdn Bhd, the air cargo unit of Malaysia Airline System Bhd (MAS), is eyeing to register revenue of RM2.4 billion next year.

 

This is in line with the turnaround plan put forth by the loss making national carrier.

 

MASkargo Chief Executive Officer Mohd Yunus Idris said the earnings target, maintained from this year's goal, is achievable despite an expected weak growth in the air freight industry, mainly due to the unresolved European debt crisis, rising fuel costs and worsening tension between China and Japan.

 

Asked if MASkargo would be reporting a profit next year from the current net loss state, Mohd Yunus said: "I am not very sure of that. This year was worse than 2011, and 2013 is not expected to be very good either."

 

MASkargo recorded a loss before tax of RM19 million in 2011, on the back of slightly over RM2 billion in revenue, as compared with a profit of RM141 million in the previous year due to higher fuel costs and impairment of its A330 freighter fleet.

 

"This year, we had set a RM2.4 billion revenue target, and so far we are on track to achieve it.

 

"The fourth quarter used to be the exciting quarter for the cargo business. But I cannot give an assurance now as the global cargo industry has lost its growth trend," he told Bernama.

 

Mohd Yunus said to mitigate the negative factors affecting the earnings of the company, MASkargo will be moving forward with two main business principles namely, controlling cost expenditure and fostering better client relationship.

 

"The issue in the local air cargo industry is the huge amount of capacity against demand for air freight.

 

"Thus, we want to meet our existing clients, as well as those lost, to identify the complexity between us and them.

 

"The complexity is what we describe as being a stumbling block to clients doing business with us," he added.

 

He said other than establishing a friendlier relationship with existing clients, regaining "lost" deals, will directly boost the air cargo entity's bottom line.

 

MASkargo, expects to generate more sales particularly from the intra-Asian market while optimising operating costs.

 

"The intra-Asian market is the place for future growth with its rising demand, especially for developing economies in need of more resources, perishable goods and livestock

 

"We have identified certain routes in Asia to expand, while restrategising those to Europe and Australia," Mohd Yunus said.

 

He said external factors such as Europe and China, directly affect the earnings of MASkargo.

 

He added that China's air freight market, which once contributed about 60 per cent to the company's turnover, had also fallen to 45-50 per cent.

 

MAS recorded a net loss of RM2.52 billion, on the back of RM13.9 billion in revenue, for the financial year ended Dec 31, 2011.

 

MASkargo, currently contributes about 15-16 per cent of the group's turnover.

[BC Tam 2]

Read somewhere that MASkargo will have the A330F visiting Labuan on scheduled basis soon

To cater to the O&G services apparently

Interesting times ahead for LBU

[S V Choong 4]

Read somewhere that MASkargo will have the A330F visiting Labuan on scheduled basis soon

To cater to the O&G services apparently

Interesting times ahead for LBU

 

Iranian O&G?

[affendi osman 0]

Read somewhere that MASkargo will have the A330F visiting Labuan on scheduled basis soon

To cater to the O&G services apparently

Interesting times ahead for LBU

 

LBU? enough runway length there?

impressive!

[Radzi 2]

Rumors are that MH will wet-lease at least one A330F to TK.

[Amirul Mazlan 0]

Normally cargo is wet lease. Good for them if it materialize as profit margin for ACMI lease is actually bigger. But how sustainable the lease, we'll see soon enough.