MAS is in crisis but confident of recovery

March 1, 2012

MAS is "in crisis" yet assured of recovery

by AFP

Malaysia Airlines pronounced Wednesday (February 29, 2012) it lost 2.52 billion ringgit ($ 836 million) last year mostly due to soaring fuel costs, admitting a flag conduit is "in crisis" yet assured of recovery.

The airline posted a fourth straight quarterly detriment this time of 1.28 billion ringgit for a quarter finale Dec 31. This compares to net distinction of 226 million ringgit for which duration a year ago.

Despite a loss, a conduit pronounced income increased somewhat dual percent, to 13.90 billion, as well as it carried 1.3 million some-more passengers compared to a prior year. It combined which a opening was impacted by a 21 percent surge in year-on-year costs mostly since of a 33 percent rise in a fuel bill upon a prior year.

The full year detriment compares to a net distinction of 234 million ringgit a year ago.Malaysia Airlines pronounced it approaching "challenging" times forward amid tall fuel costs yet it was hoping for a recovery.

"The results have for unpleasant reading. The company is in crisis," Chairman Mohamad Nor Mohamad Yusof (right) said."The Board as well as you sojourn assured which you right away have a group as well as commercial operation devise in place which will bring a required sacrifices to safeguard a turnaround as well as recovery," he added.

The airline has struggled to stay in a black in brand new years as well as in Dec unveiled a ultimate in a array of plans directed at operative a way behind to profitability ! by 2013.

It includes a "route rationalisation" which already has seen it eliminate routes servicing various cities in Europe, South Africa, a Middle East as well as Asia.The devise additionally would inhere rising a brand new regional reward airline by a second half of 2012 which would use Southeast Middle East as well as "key cities in South Middle East as well as Greater China."

However, a little attention analysts have criticised a ultimate scheme, generally a wisdom of rising a reward conduit in a challenging market.

In August, Malaysia Airlines as well as a extreme rival, bill conduit AirAsia, voiced a warn alliance directed at eliminating head-to-head foe as well as permitting each to focus upon their core markets.

Under a deal, AirAsia would concentrate upon lower-cost short-haul routes, while Malaysia Airlines could focus upon long-haul flights.

Copyright 2012 AFP. All rights reserved.

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