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Malaysian state cargo carrier profits from soaring demand for medical gloves

KUALA LUMPUR, May 19 (Reuters) - Malaysia’s state-owned cargo carrier MAB Kargo has seen “impressive” profits since February, its CEO told Reuters, helped by the country’s role as the world’s biggest producer of medical gloves.

The company raised freight rates by as much as 50% in some cases and added capacity on high-demand routes as it also saw high-volume shipments of face masks and medical gowns during the coronavirus pandemic, Chief Executive Ibrahim Mohamed Salleh told Reuters. The company declined to give profit figures.

“We ran our numbers and it makes money,” Ibrahim said in a phone interview.

Malaysia’s medical glove exports are expected to jump about 32% to 225 billion pieces this year, and its gloves association said supplies were being urgently air-lifted to Europe, Australia, Canada and America as customers did not want to wait for the usual sea route.

MAB Kargo’s performance during the pandemic contrasts with sister company Malaysia Airlines which has been forced to ground most of its planes as the coronavirus hammered global travel.

More: https://www.reuters.com/article/malaysia-airlines-cargo/malaysian-state-cargo-carrier-profits-from-soaring-demand-for-medical-gloves-idUSL4N2CW29Z

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Malaysia Aviation Group welcomes appointment of Wan Zulkiflee as new Group Chairman

SEPANG: Malaysia Aviation Group (MAG) has welcomed the appointment of Tan Sri Wan Zulkiflee Wan Ariffin as Non-Executive Group Chairman of the Board of Directors effective July 1.

Prime Minister Tan Sri Muhyiddin Yassin had announced the appointment of the Petronas chief executive officer and president of Petronas to head the national carrier, in a statement earlier today.

MAG Chief Executive Officer and Managing Director Captain Izham Ismail said the senior leadership team looks forward to working closely with Tan Sri Wan Zulkiflee in charting the Group's future.

https://www.nst.com.my/news/nation/2020/06/598500/malaysia-aviation-group-welcomes-appointment-wan-zulkiflee-new-group

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On 6/6/2020 at 9:52 PM, flee said:

Malaysia Aviation Group welcomes appointment of Wan Zulkiflee as new Group Chairman

SEPANG: Malaysia Aviation Group (MAG) has welcomed the appointment of Tan Sri Wan Zulkiflee Wan Ariffin as Non-Executive Group Chairman of the Board of Directors effective July 1.

Prime Minister Tan Sri Muhyiddin Yassin had announced the appointment of the Petronas chief executive officer and president of Petronas to head the national carrier, in a statement earlier today.

MAG Chief Executive Officer and Managing Director Captain Izham Ismail said the senior leadership team looks forward to working closely with Tan Sri Wan Zulkiflee in charting the Group's future.

https://www.nst.com.my/news/nation/2020/06/598500/malaysia-aviation-group-welcomes-appointment-wan-zulkiflee-new-group

Coming from well oiled petronas, the new chairman will either leave a legacy or retire early.

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Finance minister confirms no plans for Khazanah to inject ailing Malaysia Airlines with RM5b Covid-19 aid

https://www.malaymail.com/news/malaysia/2020/06/12/finance-minister-confirms-no-plans-for-khazanah-to-inject-ailing-malaysia-a/1874837

 

Perhaps that is one of the reasons why air fares on domestic flights are now very high - none of the airlines got any special aid from the government.

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Suitors no longer interested in Malaysia Airlines

https://themalaysianreserve.com/2020/10/15/suitors-no-longer-interested-in-malaysia-airlines/

INVESTOR interest in national carrier Malaysia Airlines Bhd (MAB) has dried up as potential rescuers grapple with their own survival due to a global decline in air travel because of the coronavirus pandemic.

At the beginning of the year, there were nine suitors to take over the troubled MAB, but today these offers are “no longer viable”, according to a source with knowledge of the matter.

“A merger or rescue of the airline is no longer possible as airlines are prioritising their own survival,” the source told The Malaysian Reserve (TMR).

Among the firms said to be in the running were Air France-KLM SA, Japan Airlines Co Ltd and domestic carriers AirAsia Group Bhd and Malindo Airways Sdn Bhd.

There have been no updates by Khazanah since April, when it was reported to have rejected a US$2.5 billion (RM10.38 billion) offer by Golden Skies Ventures Sdn Bhd.

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50488230978_45fd890910_b.jpg

Firefly to commence jet operations at Penang airport in 1Q21

KUALA LUMPUR (Oct 15): Malaysia Aviation Group’s (MAG) subsidiary Firefly Airlines will commence jet operations from the first quarter of 2021, as it realigns its strategy to better suit the current environment and post-Covid-19. 

Firefly will be adding up to 10 narrow body jets to its fleet in phases, serving the domestic, Asean and Asia Pacific markets out of Penang International Airport, MAG said in a statement today. 

“Based on available forecasts, domestic and short haul travel will be most preferred in the current environment, hence it makes commercial sense for Firefly to supply this demand but from the northern region,” said MAG group chief executive officer Captain Izham Ismail. 

https://www.theedgemarkets.com/article/firefly-commence-jet-operations-penang-airport-1q21

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Some extra readings:

Keeping Malaysia Airlines up in the air - https://www.thestar.com.my/opinion/letters/2020/10/16/keeping-malaysia-airlines-up-in-the-air

Malaysia Airlines or Firefly? It is Khazanah's call - https://www.theedgemarkets.com/article/malaysia-airlines-or-firefly-it-khazanahs-call

Commentary: Southeast Asian airlines are falling from the sky in this COVID-19 storm - https://www.channelnewsasia.com/news/commentary/southeast-asian-airlines-sia-thai-mas-debt-crisis-covid-19-13272104

As much as a lot of us Malaysia Airlines supporters care and love our national carrier, I think it is time for us to bite the bullet and let MH rest for good. 20 years of mismanagement, after more than RM40billion pour into it, chopping 6,000+ staff, early retirement for many senior and brilliant staff and selling off buildings, aircraft and many other assets, we are still in the woods and getting nowhere.

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The optics are, of course, awful. Bailouts, layoffs, unrelenting government meddling, directionless management, etc.

But would Malaysia really be better off without MH? I'd argue not. While it is unfortunate to have had billions poured into the airline, this is one dysfunctional project that does indirectly benefit Malaysians. Not everyone, I grant you, but the travelling public -- including the demographics of this forum -- can choose to avail themselves to the fruits of MH's misery. In normal times, the value was tough to beat.

Want Malaysia to be connected to the world? You'll need a national carrier for that. EK/QR aren't going to fill the void left behind by a defunct MH. Low airport taxes and landing fees aren't going to make the likes of LH/AF/LX/UA/QF/NZ fly here. D7 can't connect Malaysia to the world with their here-today-gone-tomorrow approach to its network. Our tourism market already trails behind neighbouring countries. Slashing international routes leaves potential travellers with one less incentive to visit.

FY jet doesn't have the reputation or connections to be a true international carrier. Shut down MH and AK/D7 would have no reason to be competitive. Then Malaysians would truly be worse off - higher fares with budget service.

But what about the billions that would be saved from future MH bailouts? Surely the funds will be put to some altruistic project for the benefit of the  nation, right? Get real. This is Malaysia. In all likelihood the funds will disappear into some shady project from which you and I will not benefit.

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We have tried everything with MH for so many decades already. Its time for trying something else. Covid-19 has reset the aviation industry and leveled the playing field a bit as even big airlines need to downsize. Got nothing to lose and maybe something to gain.

We won't know if we don't try.

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1 hour ago, flee said:

We have tried everything with MH for so many decades already. Its time for trying something else. Covid-19 has reset the aviation industry and leveled the playing field a bit as even big airlines need to downsize. Got nothing to lose and maybe something to gain.

We won't know if we don't try.

Expect 5 years of logistic issue within east msia and west. Who will do dangerous goods and medical equipment air transport? Gov needs to give Airasia(itself has refused to do so for years) funds and 14 months to get it rated but the planes they own are still too small. 

As of now during covid part of the transportation are being loaded on A332f A333p2c and Rmaf a400 daily ,even prior to covid it has always been the widebody to do it. Yes close down MAB but please prep a smooth transition for essential services. Firefly itself i last heard is also not categorized for such duty while Malindo i am not sure. Maswings itself is rated. 

Edited by jahur

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3 minutes ago, Walter Sim said:

AK can carry DG

Radioactive equipment included? 500kg Genset? Xray mri? Infact Airasia x should be paid more attention to for all of these. 

Edited by jahur

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2 hours ago, jahur said:

Radioactive equipment included? 500kg Genset? Xray mri? Infact Airasia x should be paid more attention to for all of these. 

Charter flight certainly won't come close to rm800m p.a.

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10 hours ago, KK Lee said:

Charter flight certainly won't come close to rm800m p.a.

You do realise the 2 hour a400m flights cost easily 210k one way? Try multiplying that 5x weekly? Its still cheaper over the 330 so should the gov purchase more heavy cargo transporter for the air force? You also have to take account of commercial cargo such as the 2x weekly 15 tonne construction material Hanoi to kk, OnG logistic items Labuan to Hong kong cannot be carried by them. Should rmaf operate commercially? Doesnt sound right. Will the foreign cargo airliners based 2 twin engine widebody freighters in East Malaysia to replace them? Or should the gov kick up Raya Airways to add more planes asap? These should be the questions answered immediately if mab is to close. Not blubbering about debt. 

Infact airasia should really hold on to Airasia X as a potential replacement for mab instead of downsizing it to just 2 set crew and 1 a330. 

Edited by jahur

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1 hour ago, jahur said:

Infact airasia should really hold on to Airasia X as a potential replacement for mab instead of downsizing it to just 2 set crew and 1 a330. 

Agree that D7 will have much better survival prospects if MAB is liquidated. In fact, they have a nice feedstock for P2F conversion, if they decide to take logistics more seriously. However, the stumbling block is funding because D7 has been bleeding cash for some years already and they don't have that many sources of financing these days.

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2 hours ago, jahur said:

You do realise the 2 hour a400m flights cost easily 210k one way? Try multiplying that 5x weekly? Its still cheaper over the 330 so should the gov purchase more heavy cargo transporter for the air force? You also have to take account of commercial cargo such as the 2x weekly 15 tonne construction material Hanoi to kk, OnG logistic items Labuan to Hong kong cannot be carried by them. Should rmaf operate commercially? Doesnt sound right. Will the foreign cargo airliners based 2 twin engine widebody freighters in East Malaysia to replace them? Or should the gov kick up Raya Airways to add more planes asap? These should be the questions answered immediately if mab is to close. Not blubbering about debt. 

Infact airasia should really hold on to Airasia X as a potential replacement for mab instead of downsizing it to just 2 set crew and 1 a330. 

If this demand is regular, there won't be a shortage of entrepreneur crony to offer chartered service even set up air cargo, national airline to milk it.

Edited by KK Lee

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22 minutes ago, KK Lee said:

If this demand is regular, there won't be a shortage of entrepreneur crony to offer chartered service even set up air cargo for it.

Yes and how many conglomerate folks like Lion air Group or FLC groups are there in Malaysia? You need to be a multi billionaire with political connections to start up an airline not a RM2 dollar bargain hunt fella.

The logistic demand and air export is regular. Have you even been to East Malaysia for that matter? Note that how the previous state gov of Sabah fell under Kadazan Dusun Murut votes by the lackluster efforts of Warisan?  Roads were in better shape prior to 2017. Contracts for town upkeep in were terminated and nobody in the public wanted to take up until 2020. Engineers were laid off for the Pan Borneo Highway projects. Poor Maritime surveillance effort that everyday we see 30-40 Undocumented immigrants sneaking in per 1% of them rounded up has covid for that matter. While the gov big brain idea was to post an additional 8k soldiers to east coast without giving them proper radar equipment and ships to efficiently scan over the seas. The gov only spends  1.1 % of its gdp on military budgeting whereas vietnam and Philippines were at least spending above 3% heck even philippines increased to 11% now under Duterte.  While all the  previous and current gov of Malaysia could think about is how scared they are to raise the GDP debt ratio to 68% from 53% while giving out  stupid b40 cash handouts when it can be given out to save jobs instead.

Edited by jahur

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6 hours ago, jahur said:

Yes and how many conglomerate folks like Lion air Group or FLC groups are there in Malaysia? You need to be a multi billionaire with political connections to start up an airline not a RM2 dollar bargain hunt fella.

The logistic demand and air export is regular. Have you even been to East Malaysia for that matter? Note that how the previous state gov of Sabah fell under Kadazan Dusun Murut votes by the lackluster efforts of Warisan?  Roads were in better shape prior to 2017. Contracts for town upkeep in were terminated and nobody in the public wanted to take up until 2020. Engineers were laid off for the Pan Borneo Highway projects. Poor Maritime surveillance effort that everyday we see 30-40 Undocumented immigrants sneaking in per 1% of them rounded up has covid for that matter. While the gov big brain idea was to post an additional 8k soldiers to east coast without giving them proper radar equipment and ships to efficiently scan over the seas. The gov only spends  1.1 % of its gdp on military budgeting whereas vietnam and Philippines were at least spending above 3% heck even philippines increased to 11% now under Duterte.  While all the  previous and current gov of Malaysia could think about is how scared they are to raise the GDP debt ratio to 68% from 53% while giving out  stupid b40 cash handouts when it can be given out to save jobs instead.

In this country, with gomen contract in hand and strong cable, one could outsource while setting up a airline and obtain finance.

shafie apdal was too focus on his tribe and neglected the rest, and deserved to be ousted.

due to historical and cultural connection, sabah east coast border is porous. unless shoot to kill curfew is enforced, undocumented immigrant is almost impossible to stop.

a reason why mindef is poorly funded is due to previous excessive procurement.

pan borneo highway contract was a shambles from bn regime and didn't improve under pr gomen.

taxpayers will eventually need to pay for gomen borrowing and handouts. believe our economy will continue to fall behind our neighbours.

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