MAS is getting better now

[Guest Michael]

In regards to the latest news from The Star and this is from an Australian point of view, I am sure MAS is definitely on the improvement scale now people.

[Seth K 3]

A little bit specific will be help

[Guest Michael]

Seth in regards to profits and yields. Are you going to be in K.L. in the beginning of October at all mate?

[Seth K 3]

MALAYSIA AIRLINES REPORTS LARGER NET LOSS IN H1

 

Thursday August 31, 2006, 1:44 pm

 

KUALA LUMPUR, Aug 31 Asia Pulse - Malaysia Airlines (MAS) (KLSE:3786) has booked a net loss of RM498.2 million (US$135.4 million) in the first six months of this year against a RM166.2 million loss for the same period a year earlier.

 

Revenue edged up 0.69 per cent to RM6.08 billion from RM6.04 billion previously, the national flag carrier said in a filing on Aug 30.

 

Managing director Idris Jala said: "As at June 30, 2006, we are on track to meet our internal targets as outlined in the Business Turnaround Plan."

 

"Our yield improvement measures are showing results and we still need to intensify our efforts," he said.

 

He said the first half showed strong traffic performance and this is expected to continue for the airline industry for 2006.

 

"However, competition remains intense and fuel prices will continue to be a major factor influencing profitability of airlines," Idris said.

 

MAS narrowed its net loss to RM177.08 million for the second quarter from RM277.45 million a year earlier, thanks to higher operating revenue, higher yields and savings arising from effective cost-cutting measures.

 

Idris said its cost-cutting measures under its business turnaround plan had curbed overall increases in expenses.

 

Revenue in the second quarter rose 5.51 per cent on-year to RM3.05 billion from RM2.89 billion, while passenger yields grew by 18 per cent.

 

Revenue/available seat kilometres (ASK) climbed 15 per cent to 15.7 sen/ASK, although seat factor fell 1.8 per cent.

 

Revenue passengers kilometres (RPK) was 9.1 billion against 10.3 billion previously.

 

 

 

 

[Guest Michael]

Well Seth lets hope everything keeps improving as the first half of this year has shown improvements, especially after the BTP.

[Seng Lim 0]

MAS: Zurich, Rome, LA routes to stay

 

By B.K. SIDHU

 

PETALING JAYA: Malaysia Airlines (MAS) will keep its Zurich, Rome and Los Angeles routes despite an earlier plan to do away with these unprofitable routes.

 

In fact, the airline plans to increase flights to Los Angeles and even Paris as part of its network rationalisation scheme. But it has yet to decide whether to keep its Kuala Lumpur-Stockholm-New York route that currently suffers from low load factor.

 

“We can improve on the Los Angeles route,’’ managing director Idris Jala said when releasing MAS' results yesterday.

 

Network rationalisation is the next big thing on Jala’s plate as he struggles to bring the airline back to profitability. The airline’s losses are narrowing after Jala focused on improving yields, cutting cost, selling assets and reducing the workforce. He had to make some tough decisions in the way the airline should be operated and managed, and even managed to cut a good deal in the domestic air services rationalisation plan.

 

While Jala said “the improvements we put in place at the airline are beginning to bear fruit,’’ rising jet fuel prices remain a major concern for airlines.

 

Despite the improvements at MAS, profits are not going to come overnight. On the other hand, if nothing is done, MAS would be reporting a RM1.7bil net loss this year. Now that a RM50mil net profit is predicted for next year, even analysts are betting on Jala being able to beat that.

 

As part of the network rationalisation plan, MAS has signed code share agreements with several airlines and the issue of low load factor will gradually diminish. The recent deal with Virgin Blue is a major development between a full service carrier and a low-cost carrier and allows for interlining.

 

The move is a clever one, given that MAS has high load factors for its Australian flights. It also currently carries passengers for KLM into Australia and an interlining arrangement with Virgin Blue bodes well for MAS.

 

Jala said “a few more partnerships are in the pipeline.’’ He is looking at a similar arrangement with Italy’s Alitalia to ferry travellers into parts of Italy and vice versa. That is part of the hub and spoke concept that Jala has for the European sector.

 

Jala also wants to expand the partnership into China, India and South Africa. MAS was likely to partner South African Airways for the African connection and China Southern for the China connectivity, sources said.

 

As for India, the ideal partner appears to be Jet Airways, a promising airline. But present regulations in India do not permit such an arrangement.

 

The network rationalisation plan would also see MAS focusing more on the region but with strategic tie-ups with airlines in Africa, India, Middle East, China, American and Europe so that it is able to provide wide connectivity with a code share or partnership.

 

On domestic operations, Jala said MAS offered one of the lowest fares in the world despite the average 15% rise in domestic airfares.

[Andrew Yong 0]

At least they minimize the loss and hear some advertiment in radio and TV!!!! I think will be in good position in next few year!!!!!

[kandiah k 0]

Check this out.

 

 

 

 

http://www.cargonewsasia.com/ecna/preview.aspx?article=3035

 

 

 

[Seth K 3]

Kandiah, love the article!!! Well said and appoint

KUL is far left behind Thailand and Singapore............something has to be done soon

 

[Pieter C. 5]

Especially, liked this one:

 

"Culas said many government officials had adopted a tidak apak (couldn't care less) appproach and that this represented a giant stumbling block in turning Malaysia's most expensive airport, situated just 50 km south of Kuala Lumpur, into a leading air cargo hub in the region."

 

KLIA, being so close to Port Klang, should have big potential for cargo flows both ways (too bad about the couldn't care less attitude)

[Sandeep G 1]

Especially, liked this one:

 

"Culas said many government officials had adopted a tidak apak (couldn't care less) appproach and that this represented a giant stumbling block in turning Malaysia's most expensive airport, situated just 50 km south of Kuala Lumpur, into a leading air cargo hub in the region."

 

KLIA, being so close to Port Klang, should have big potential for cargo flows both ways (too bad about the couldn't care less attitude)

 

 

Something common not only to the aerospace industry here..

 

when will they learn..

[Tony 1]

Speaking more out of frustration than anger the Afam chief said in numerous meetings with government ministries such as health and Customs and other authorities "there has only been talk but no action (on their part),'' citing, for example, lack of action on such issues such as pharmaceutical products and the introduction of a green lane. "One is not sure whether the officials are listening at all. We've spent a lot of time talking,'' Culas said. "And when you write to them they don't bother to reply.''

 

Malaysia is a loyal member of NATO - No Action, Talk Only. :rofl:

[William Tee 0]

sad

[Syaz 0]

Especially, liked this one:

 

"Culas said many government officials had adopted a tidak apak (couldn't care less) appproach and that this represented a giant stumbling block in turning Malaysia's most expensive airport, situated just 50 km south of Kuala Lumpur, into a leading air cargo hub in the region."

 

KLIA, being so close to Port Klang, should have big potential for cargo flows both ways (too bad about the couldn't care less attitude)

 

tot u made that tidak apak part up...

so it's in the article... cool!!

 

[BC Tam 2]

Well, it has to happen sooner or later I suppose. Was quite difficult to imagine the govt not meddling when things got political.

 

So what, we 90% back to pre-rationalisation status by month's end ? From reverse view, we'll be 90% irrational by then !!

Edited September 9, 2006 by BC Tam

[Sandeep G 1]

How thoughtful of the government..

 

The lack of understanding and the tiada apa attitude combine to drown MAS and AXM.. I hope things get better.. but we've all been saying that since the dawn of time..

[Guest Michael]

Well people I am thinking that revenue is now on the uptrend for MAS, and let's hope Idris is keeping things under control.