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Johan Z

4Q 2013 Financial Results for MH, AK and D7

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many factor need to be consider, one particular point i notice clearly in MAS flight was poor utilization of aircraft. Some only operate 4 short haul sector per day, some 6 most 7, u can try check this in FR24, just click on the aircraft rego and it shows you previous leg, on the other hand, AK a/c really work like hell... 8-10 sector from 6 am to 12pm...daily

 

You cannot rely on FR24. The number of sectors done per aircraft per day depends on sectors length. You need to average them out within certain times before that aircraft goes for checks. In fact, MAS B738s are doing quite well in terms of hours flown per day, it's almost 11 hrs per day and will be increased further soon.

MH is leasing out one of their A330-200F to TK next year....overcapacity.

MAS has been wet leasing one A330 to TK since last year and expected to renew the contract till next year.

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Tony Fernandes expresses shock over MAS’s losses, says aviation industry needs a review

Putrajaya needs to review aviation policies as it can't afford to spend taxpayers' money on loss-making Malaysia Airlines (MAS) which bled RM1.2 billion last financial year, said Tan Sri Tony Fernandes.

The founder of AirAsia added that he was “shocked” at the amount of losses suffered by MAS.

“The whole aviation industry needs a relook,” he told The Malaysian Insider by phone today.

Saying that the industry’s policies and airline management need to shape up, Fernandes said that MAS and Malaysia Airports Holdings Berhad (MAHB) have to start churning profits to avoid burdening taxpayers.

“My point is that if you’re running a private company, could you afford to cut 16% of your costs and still lose RM1 billion?” he asked.

“It’s only because there’s taxpayers' money that one can afford to do that. And this isn’t solving the issue,” he added.

Yesterday, MAS had reported its fourth straight quarterly loss for 2013 and chalked up RM1.17 billion in losses for the year – three times as much as in 2012.

The state-owned carrier has been implementing cost-cutting measures to cut its expenses such as axing several routes and introducing lower ticket fares to increase its load.

However, the airline is also awaiting government approval to purchase 100 Airbus and Boeing passenger aircraft that would amount to several billion ringgit.

A Reuters report said that the airline’s decision to spend on newer aircraft is to boost profitability and retire its older, less fuel-efficient aircraft.

Fernandes, meanwhile, criticised MAS and MAHB’s continued spending and losses.

“It’s supposed to be profit-making. This just hurts decent players in the business when they’re spending like there’s no tomorrow,” said Fernandes.

According to MAS’s website, the carrier has 88 aircraft in its fleet, including Airbus A330s and A380s, and Boeing 777-200s and 737s.

The airline’s expenditure also went up by 10% last year to RM14.9 billion year-on-year due to high fuel prices.

MAS posted its highest ever loss in history when it recorded RM2.52 billion nett loss in 2011. The company , however, managed to narrow its losses to RM433 million in 2012. – February 19, 2014.

http://www.themalaysianinsider.com/malaysia/article/tony-fernandes-expresses-shock-over-mass-losses-says-aviation-industry-need

 

Maybe he'll propose shutting down MH as part of the review.

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I just hand to qwote this person from forum.lowyat

 

 

by alanyuppie

 

A patient called "MAS" has been on life support system before the birth of a baby next door, whom now has started to walk and run. Now , ths kid walks into his ward like a boss and tugging at that patient and whisper "wake up dude!" and tugging at the various cable connected to it.

 

The Dr. is not happy

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MAS' 2013 loss deepens to RM1.2b

 

PERSISTENT TURBULENCE: Forex and fuel cost form big chunk of national carrier’s net operating loss, says Dacko

 

web.jpg

 

MALAYSIA Airlines' (MAS) net loss widened to RM1.2 billion for full-year 2013 from RM432.6 million in 2012, due to higher depreciation and finance charges, coupled with unrealised foreign exchange (forex) loss and high jet fuel cost.
MAS senior vice-president (head of marketing and products commercial) Dean Dacko said forex and fuel cost formed a big chunk of the national carrier's net operating loss.
The airline swung to RM194 million forex loss last year compared with a RM190 million gain in 2012.
Meanwhile, jet fuel accounted for 39 per cent of the group's expenditure, with the price remaining high throughout last year, averaging at US$128 (RM422.4) per barrel.
Despite the loss, Dacko said MAS successfully carried more passengers with an overall load factor of more than 85 per cent by end-2013, which is no small achievement.

CEO's comments: http://www.btimes.com.my/Current_News/BTIMES/articles/20140219003254/Article/index_html

 

This is not just a matter to MH, but a matter to the entire nation's GDP and growth! How much money do we need to support MH and yet we can actually utilise those money to build better infrastructure and develop our nation! Outrageous!

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AJ should quit since losses are even more than previous year....no point in saying he has 1 year left on his contract. Khazanah should then replace him NOW rather than later as he is not able to guess what is going to happen next!

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I just hand to qwote this person from forum.lowyat

 

 

 

Good description. Some keywords here the cables, the Doctor, the life support system.

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Probably of academic interest, or lesser, but just supposing if MH is allowed to pack up and go the way of the dodo, what would the expected annual profit at AK/D7 group be looking like ?

Also that of OD ?

And the impact on MAHB, in particular at KLIA1 ?

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Good description. Some keywords here the cables, the Doctor, the life support system.

I note absence of the words 'demise' and 'death bed' in the quote by alanyuppie

I guess life goes on then ..... :)

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Don't bungkus before mid April lah... I've booked a family holiday to KIX on MH!

 

Then again I managed to get the airfares cheap, so maybe that's the reason for the losses.

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AJ should quit since losses are even more than previous year....no point in saying he has 1 year left on his contract. Khazanah should then replace him NOW rather than later as he is not able to guess what is going to happen next!

Don't think it makes much of a difference - even a new CEO won't be able to cancel those crony contracts that will last years and years into the future. The only way is to shut down the airline and build something new. That, or nationalise Airasia... ;)

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That, or nationalise Airasia... ;)

And Air Asia will eventually end up like MAS too. So please don't.

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Losing money for every passenger flown. RM1.17b /no. of passenger in 2013 = ?

 

My simplistic reasoning would be to ditch MH in order to save it :-(

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Shall we close this airline down and start a fresh?

You have any idea on how to start the ball rolling ? Please share

(I am assuming it's MH you're referring to)

Edited by BC Tam

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Yes, start from the beginning, best choice (and by default mind you)
So first make intention to bungkus by informing gahmen or staff or union ....... ?

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