Malaysian Airline System returns

Malaysia Airlines Chairman Tan Sri Mohd. Nor Yusoff unveiling the aircraft with the original Malaysian Airline System livery

Malaysia Airlines Chairman Tan Sri Mohd. Nor Yusoff unveiling the aircraft with the original Malaysian Airline System livery

Malaysia Airlines unveiled a new B737-800 in original Malaysian Airline System livery. It is part of Malaysia Airlines 40th anniversary celebrations.

The aircraft with tail number 9M-MXA was unveiled by Chairman Tan Srì Mohd Nor Yusof. Present is MD Ahmad Jauhari Yahya and several BOD members and senior management. Also invited are 1,000 employees of the national carrier. The unveiling ceremony was at Hangar 5, Malaysia Airlines Engineering Complex, Souther Support Zone, KLIA.

20121212-151229.jpg

Seven of the long service employees were invited to speak and share their wealth of experience on the makeshift stage. Alexander Idiculas was the first to speak. He is one of the rare who is still serving Malaysia Airlines when it started operations on 1 October 1972. Today, he is licensed aircraft maintenance engineering instructor.

Captain Abdul Shukor was commandeering a Fokker over thirty years ago on a flight over Banjaran Titiwangsa when he was asked to look out for a missing aircraft, last reported near Janda Baik. Later, he learnt that the missing Cessna was piloted by then Home Minister Tan Sri Ghazali Shafie and it had crashed.

AJ and some of the proud employees

AJ and some of the proud employees

Another story is about a stewardess Irma Idris who recollects her experience delivering a baby during flight.

Veteran stewardess Melinda Lui told the audience of her experience over 35 years ago serving the B707-200 flights to London Heathrow. There were no trollies like on aircrafts today, so each meal was taken from to each passengers. Since there were no inflight movies and no bunks for crew to rest, they were encouraged to chat up with passengers during the flight.

The 9M-MXA B737-800 with the original MAS livery

The 9M-MXA B737-800 with the original MAS livery

The aircraft is the first of the airlines’ B737-800 workhorse latest fleet. This special livery brought memories to many and the romance of air travel, especially in the 70s.

It was nostalgic indeed. Befits the unveiling of the original Malaysian Airline System livery to remind the instrument of nation building’s illustrious 40 years history. The national carrier is set to regain their past glory.

Malaysian Airline System started operations with this B737-2H6 on 1 October 1972

Latest Malaysia Airlines financial performance:

Malaysia Airlines Continues to Improve Results for 3rd Quarter 2012

Subang, 27 November 2012 : Malaysia Airlines today announced a small operating profit of RM4 million and a Net Income After Tax (NIAT) of RM37 million for the third quarter ended 30 September 2012. The profit achieved in this quarter was the best performance to-date for the national airline following 6 consecutive quarters of losses.

The operating profit and NIAT for the third quarter compared favourably against an operating loss of RM192 million and a loss after tax of RM478 million in the same period in 2011.

The improvement in performance quarter-on-quarter (q-o-q) at the operating level was mainly due to the Route Rationalisation Programme which saw a 7% reduction in ASK (Available Seat Kilometre). This resulted in a 9% decrease in fuel costs and a 7% decrease in non-fuel costs in line with capacity cuts. At the same time, the Group’s total revenue reduced by only 2% to RM3.5 billion.

Fuel spending, which accounted for 38% of expenditure, fell to RM1.3 billion for the quarter following a 9% drop in consumption. The same quarter also saw a drop in jet fuel price from USD137 per barrel in the third quarter of 2011 to an average USD131 per barrel in 2012.

For the nine months ended 30 September 2012, the Group’s operating loss stood at RM405 million compared to a loss of RM975 million in 2011. Net loss after tax for the nine months ended 30 September 2012 improved 61% to RM484 million against a loss of RM1.247 billion in the same period in 2011.

Commenting on the performance, Malaysia Airlines Group Chief Executive Officer Ahmad Jauhari Yahya said, “Revenue initiatives have started to gain traction in the market, and combined with the improved utilisation of the fleet and our manpower, we are beginning to see the results of all this hard work show in our quarterly results.”

“We are very encouraged by the improved trend in our financial performance in this third quarter especially after 6 quarters of loss. The results are our best to-date. This further confirms our commitment to maintain course with the implementation of our Business Plan. This is now even more important given the challenging economic environment around the world, increased competition and capacity, and continued high fuel costs. Our focus remains to increase revenue and manage our costs.”

“The combination of the Route Rationalization Programme as a key part of our Recovery Plan, aided by many other revenue initiatives, contributed to the Group registering a small profit in the third quarter. These include reviewing all of our customer segments, relooking at our systems so that we respond faster to our customers and the market, and continuously improving our customer experience. Many of these processes are at first glance simple things, yet when one gets into the details of the various stakeholders inside and outside of the airline, can be a challenge to fix to ensure sustainable profits in future years.”

“In terms of managing our costs, we are seeing good results of optimising the deployment of our assets and driving better productivity. Our team is working well together and has a renewed energy to find ways to make things work. Although the journey ahead is long, with focus, we will succeed”, added Ahmad Jauhari.

Malaysia Airlines carried 3.30 million passengers in the third quarter of 2012 compared to 3.35 million q-o-q. On Time Performance (OTP) for the quarter averaged 87%. Seat load factor was 74.5% compared to 75.9% in the same period last year.

In September, Kathmandu became Malaysia Airlines newest destination. Just 2 months on, the number of frequencies between Kuala Lumpur-Kathmandu has been increased from 3 flights a week to now 5 flights weekly. This increase in frequency is in line with Malaysia Airlines’ strategy to deepen our footprint regionally to tap the growing market for travel.

Some earlier suspended routes per the Route Rationalisation programme have since been reviewed. Regional routes offering high potential for growth have seen an increase in frequency, such as Bangkok, Chennai and Taipei. Malaysia Airlines also announced the resumption of 2 international routes from Kota Kinabalu by year’s end to Perth and Osaka, and an additional frequency to Hong Kong.

Despite intense competition and sluggish markets particularly in Europe, Revenue per Available Seat Kilometre (RASK) was up marginally by 1% as a result of improved yield management and pricing segmentation. Yields improved 3% in the third quarter of 2012 q-o-q.

The airline’s flagship A380 aircraft continues to see excellent demand following entry into commercial service in July 2012. Just days ago on 24 November, Malaysia Airlines began a second A380 daily service on the Kuala Lumpur-London Heathrow in response to market demand for a more comfortable ride on a newer aircraft. Among the many plus points of Malaysia Airlines’ A380 are its wide seats. First Class’ 40 inch seats are the widest in the sky whilst Economy seats at a wide 18 inches with forward-recline functionalities are a big hit with passengers.

Malaysia Airlines will join the oneworld alliance in February 2013. With full membership, Malaysia Airlines will be able to offer its guests seamless travel on a wider global network of quality member airlines plus many rewards and benefits particularly for frequent flyers. Malaysia Airlines is expected to reap financial benefit from additional interline traffic that will feed into its strong Asia footprint.

Malaysia Airlines’ main subsidiary MASkargo reported a 55% smaller net loss of RM11 million for the third quarter ended 30 September 2012 compared to a loss of RM25 million q-o-q. Total revenue for cargo comprising belly space and freighter for the three months ended 30 September 2012 came in at RM482 million, only 3% less q-o-q. Capacity decreased 3% and yield was only marginally lower by 1% q-o-q.

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Published in: on December 12, 2012 at 15:12  Comments (17)  

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17 CommentsLeave a comment

  1. Pukimak punya mat.

  2. I just wanna copy what the Sshsn bugger said – “Pukimak punya mat”.

    To let readers know what kind of a bastak he is – in case BD deletes his comment. .

  3. Which one – mat nor or mat jay or both?

  4. “This special livery brought memories to many and the romance of air travel, especially in the 70s.” I hope nostalgia alone can bring profit to MAS which is unlikely consider its stock price slipped further today.

    • Any suggestion on how to bring profit? Or you just wanna bash, no ideas, no suggestions?

      ” its stock price slipped further today.” So will bankrupt? Wat you trying to say? You wanna bring public sentiment against the national airline by saying so here?

      Have you heard about “constructive criticism”, otherwise shut up? And why the hell are you using the name “malaysian”? Chiissh.

      • The suggestion is easy. Let it bankrupt by itself or being bought by some innovative businessman and start new just like Airasia, then it might have a chance of true survival. Otherwise, it will continue to bleed rakyat hard earn money and enrich the cronies.

      • How stupid, idiotic and irresponsible “suggestion”. But then, blokes like this fella are always like that.

        The usual Pakatan Rakyat goons’ wild accusations without any justification. But he sure won’t ask Talamgate people to bankrupt themselves, or sell to others at cheap prices. Yet Talamgate also involves “bleed rakyat hard earn money and enrich the cronies.” And no national flag carrier status involved.

      • How can we find responsible blokes in Pakatan Rakyat? Imagine claiming to have 300,000 stateless Indians when the National Registration Dept records show only about 15,000 and about half has been solved.

        And trying to get as many of them turn up at the Sit-In at NRD yesterday, one bloke calling himself “PKR Bala” even sent SMS messages to real Indian nationals to attend, promising them Malaysian Blue ICs. Only a meager 300 turned up, despite the “tipu attendees”!

        No less than the Opposition blog Malaysia Chronicle wrote the report. The reporter managed to find at least 10 Indian nationals, one of whom was angry they were duped, having to go to Putrajaya and missing work for the day, all for nothng.

    • Biggie’s intention is for Malaysians to hv a pride of the national carrier and see it as an national institution.

      The last quarter report already talking about operation profit. The CASK has termendously reduced and RASK improved.

      It shows that AJ and his management is doing something right because Malaysia Airlines still hv not totally resolve its ‘legacy’ issues, which incl cost of leasing of the aircrafts. Some of these leasing deals post Amokh-Danny WAU schemes are not biting hard on Malaysia Airlines.

      The CASK is also coming down as some of the costlier old workhorses hv been withdrawn & new ones plying these routes.

      Of course, the new management under AJ is intensifying revenue.

      Undoubtably, this Malaysian fellow sounds typical sort of anarchists who are giving BERSIH, Himpunan Hijau, Suaram fake kangaroo court trial, Rafizi’s BAFIA and ultimately, Anwar’s Malaysian Spring total support.

      • Thank you.

        AJ and new management team is rationalizing all assets, routes and networks and optimizing the workforce, to reach desirable results. Productivity increased.

        Operating cost especially in MRO and aircraft management proven to bring positive results.

        New aircrafts, products, campaigns and new marketing avenues have brought positive results. One World network would expand the productivity and business even to bigger markets.

        Please read the extract of this article:

        Malaysia Airlines Continues to Improve Results for 3rd Quarter 2012

        Subang, 27 November 2012 : Malaysia Airlines today announced a small operating profit of RM4 million and a Net Income After Tax (NIAT) of RM37 million for the third quarter ended 30 September 2012. The profit achieved in this quarter was the best performance to-date for the national airline following 6 consecutive quarters of losses.

        The operating profit and NIAT for the third quarter compared favourably against an operating loss of RM192 million and a loss after tax of RM478 million in the same period in 2011.

        The improvement in performance quarter-on-quarter (q-o-q) at the operating level was mainly due to the Route Rationalisation Programme which saw a 7% reduction in ASK (Available Seat Kilometre). This resulted in a 9% decrease in fuel costs and a 7% decrease in non-fuel costs in line with capacity cuts. At the same time, the Group’s total revenue reduced by only 2% to RM3.5 billion.

        Fuel spending, which accounted for 38% of expenditure, fell to RM1.3 billion for the quarter following a 9% drop in consumption. The same quarter also saw a drop in jet fuel price from USD137 per barrel in the third quarter of 2011 to an average USD131 per barrel in 2012.

        For the nine months ended 30 September 2012, the Group’s operating loss stood at RM405 million compared to a loss of RM975 million in 2011. Net loss after tax for the nine months ended 30 September 2012 improved 61% to RM484 million against a loss of RM1.247 billion in the same period in 2011.

        Commenting on the performance, Malaysia Airlines Group Chief Executive Officer Ahmad Jauhari Yahya said, “Revenue initiatives have started to gain traction in the market, and combined with the improved utilisation of the fleet and our manpower, we are beginning to see the results of all this hard work show in our quarterly results.”

        “We are very encouraged by the improved trend in our financial performance in this third quarter especially after 6 quarters of loss. The results are our best to-date. This further confirms our commitment to maintain course with the implementation of our Business Plan. This is now even more important given the challenging economic environment around the world, increased competition and capacity, and continued high fuel costs. Our focus remains to increase revenue and manage our costs.”

        “The combination of the Route Rationalization Programme as a key part of our Recovery Plan, aided by many other revenue initiatives, contributed to the Group registering a small profit in the third quarter. These include reviewing all of our customer segments, relooking at our systems so that we respond faster to our customers and the market, and continuously improving our customer experience. Many of these processes are at first glance simple things, yet when one gets into the details of the various stakeholders inside and outside of the airline, can be a challenge to fix to ensure sustainable profits in future years.”

        “In terms of managing our costs, we are seeing good results of optimising the deployment of our assets and driving better productivity. Our team is working well together and has a renewed energy to find ways to make things work. Although the journey ahead is long, with focus, we will succeed”, added Ahmad Jauhari.

  5. For all practical purposes, Malaysian Airlines is already bankrupt. it is kept afloat by repeated use of tax payers money.
    You want constructive criticism, well here is one..get the UMNO fells out from exploiting the airlines. Trim the staff, stop the massive leakages that enrich the ruling party cronies…this is just the starters..can they do it…hell will freeze over first before anything is done.The only thing that they do well is to use taxpayers money to enrich themselves. And that is a FACT!!!

    • Here’s another idiotic kind of suggestion. School boys’ kind. No clue on staff requirements of an airline like MAS, no authoritative or comparative figures mentioned, simply say through his arse hole “Trim the staff”.

      The rest of what he says is idiotic balderdash. Again the wild, unsubstantiated allegations of “UMNO .. exploiting the airlines .. leakages that enrich the ruling party cronies ” and such nonsense that can only leak from the backsides of Pakatan goons after Anwar Al Juburi has gone in.

  6. SIA has just negotiated to sell it’s 49% stake in Richard Branson’s Virgin Atlantic to US carrier Delta Airlines for US$360 million.

    Analysts have noted that SIA has a net cash stockpile of S$3.8 billion.

    This is an airline that started off at the same time as MAS, after MSA (Malaysia-Singapore Airlines) was split, due to disagreements between the governments of Malaysia and Singapore at the time.

    (in retrospect, one wonders what could have been achieved if MSA was allowed to continue, with dual HQs in KL and Singapore?)

    What should be of concern to MAS is analysts’ highlighting the challenges to SIA from low cost carriers and Middle Eastern airlines in the key Asia-Pacific region. These are exactly the same challenges that MAS has to contend with, even as it prepares to join the Oneworld alliance.

    To quote K Ajith, an analyst with UOB Kay Hian: “The market…should be focusing on the fact that the airline (SIA) has some S$17 billion in capex commitments, struggles against competition from Middle Eastern and other new world carriers, and suffers translation pressures from a strong Sing dollar. Of course, traffic growth has been in the region of 7 per cent, but the challenges are real and present.” (Singapore Business Times, Dec 13, 2012).

    Apply the same reasoning to MAS:

    – how to finance hefty capex commitments for fleet upgrading and modernisation?

    – how to compete effectively against LCCs and Middle Eastern carriers, while improving bottom line profitability?

    – how to manage translation pressures from a strengthening Malaysian ringgit?

    I would hazard a guess that MAS isn’t out of the woods yet. Not by a long shot. And not in a world where it’s competitors aren’t standing still, but busy restructuring, downsizing, entering into all manner of alliances and equity swops and refleeting.

    • Thank you for your skepticism.

      Please refer to this article.

      Malaysia Airlines Continues to Improve Results for 3rd Quarter 2012

      Subang, 27 November 2012 : Malaysia Airlines today announced a small operating profit of RM4 million and a Net Income After Tax (NIAT) of RM37 million for the third quarter ended 30 September 2012. The profit achieved in this quarter was the best performance to-date for the national airline following 6 consecutive quarters of losses.

      The operating profit and NIAT for the third quarter compared favourably against an operating loss of RM192 million and a loss after tax of RM478 million in the same period in 2011.

      The improvement in performance quarter-on-quarter (q-o-q) at the operating level was mainly due to the Route Rationalisation Programme which saw a 7% reduction in ASK (Available Seat Kilometre). This resulted in a 9% decrease in fuel costs and a 7% decrease in non-fuel costs in line with capacity cuts. At the same time, the Group’s total revenue reduced by only 2% to RM3.5 billion.

      Fuel spending, which accounted for 38% of expenditure, fell to RM1.3 billion for the quarter following a 9% drop in consumption. The same quarter also saw a drop in jet fuel price from USD137 per barrel in the third quarter of 2011 to an average USD131 per barrel in 2012.

      For the nine months ended 30 September 2012, the Group’s operating loss stood at RM405 million compared to a loss of RM975 million in 2011. Net loss after tax for the nine months ended 30 September 2012 improved 61% to RM484 million against a loss of RM1.247 billion in the same period in 2011.

      Commenting on the performance, Malaysia Airlines Group Chief Executive Officer Ahmad Jauhari Yahya said, “Revenue initiatives have started to gain traction in the market, and combined with the improved utilisation of the fleet and our manpower, we are beginning to see the results of all this hard work show in our quarterly results.”

      “We are very encouraged by the improved trend in our financial performance in this third quarter especially after 6 quarters of loss. The results are our best to-date. This further confirms our commitment to maintain course with the implementation of our Business Plan. This is now even more important given the challenging economic environment around the world, increased competition and capacity, and continued high fuel costs. Our focus remains to increase revenue and manage our costs.”

      “The combination of the Route Rationalization Programme as a key part of our Recovery Plan, aided by many other revenue initiatives, contributed to the Group registering a small profit in the third quarter. These include reviewing all of our customer segments, relooking at our systems so that we respond faster to our customers and the market, and continuously improving our customer experience. Many of these processes are at first glance simple things, yet when one gets into the details of the various stakeholders inside and outside of the airline, can be a challenge to fix to ensure sustainable profits in future years.”

      “In terms of managing our costs, we are seeing good results of optimising the deployment of our assets and driving better productivity. Our team is working well together and has a renewed energy to find ways to make things work. Although the journey ahead is long, with focus, we will succeed”, added Ahmad Jauhari.

      Malaysia Airlines carried 3.30 million passengers in the third quarter of 2012 compared to 3.35 million q-o-q. On Time Performance (OTP) for the quarter averaged 87%. Seat load factor was 74.5% compared to 75.9% in the same period last year.

      In September, Kathmandu became Malaysia Airlines newest destination. Just 2 months on, the number of frequencies between Kuala Lumpur-Kathmandu has been increased from 3 flights a week to now 5 flights weekly. This increase in frequency is in line with Malaysia Airlines’ strategy to deepen our footprint regionally to tap the growing market for travel.

      Some earlier suspended routes per the Route Rationalisation programme have since been reviewed. Regional routes offering high potential for growth have seen an increase in frequency, such as Bangkok, Chennai and Taipei. Malaysia Airlines also announced the resumption of 2 international routes from Kota Kinabalu by year’s end to Perth and Osaka, and an additional frequency to Hong Kong.

      Despite intense competition and sluggish markets particularly in Europe, Revenue per Available Seat Kilometre (RASK) was up marginally by 1% as a result of improved yield management and pricing segmentation. Yields improved 3% in the third quarter of 2012 q-o-q.

      The airline’s flagship A380 aircraft continues to see excellent demand following entry into commercial service in July 2012. Just days ago on 24 November, Malaysia Airlines began a second A380 daily service on the Kuala Lumpur-London Heathrow in response to market demand for a more comfortable ride on a newer aircraft. Among the many plus points of Malaysia Airlines’ A380 are its wide seats. First Class’ 40 inch seats are the widest in the sky whilst Economy seats at a wide 18 inches with forward-recline functionalities are a big hit with passengers.

      Malaysia Airlines will join the oneworld alliance in February 2013. With full membership, Malaysia Airlines will be able to offer its guests seamless travel on a wider global network of quality member airlines plus many rewards and benefits particularly for frequent flyers. Malaysia Airlines is expected to reap financial benefit from additional interline traffic that will feed into its strong Asia footprint.

      Malaysia Airlines’ main subsidiary MASkargo reported a 55% smaller net loss of RM11 million for the third quarter ended 30 September 2012 compared to a loss of RM25 million q-o-q. Total revenue for cargo comprising belly space and freighter for the three months ended 30 September 2012 came in at RM482 million, only 3% less q-o-q. Capacity decreased 3% and yield was only marginally lower by 1% q-o-q.

  7. Visit Freemalaysiakini2.com No subscription needed…

  8. Apa pun, selamat hari jadi MAS. Kepada warga kerja MAS selamat berkhidmat, prestasi perkhidmatan anda semua menjadi kebanggaan negara.

  9. [...] also witnessed the 40th celebrations of Malaysia Airlines and the unveiling of the B737-800 9M-MXA in the original Malaysian Airline System livery, as part of the year long [...]


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