MAS INCUR US$4.65 MLN LOSS FROM RECENT ASH CRISIS

PETALING JAYA, May 17 (Bernama) -- The recent ash crisis, due to the recent Iceland volcano eruption, has left Malaysia Airlines (MAS) short of RM15 million (US$4.65 million), in just one week.

Its Managing Director and Chief Executive Officer, Tengku Azmil
Zahruddin, said the amount spanned from loss of sales to providing alternative
flights for stranded customers.

"We estimated the negative impact to us at about RM15 million and it was a
bit of everything.

"There was defintely loss of sales as people who wanted to fly to Europe or
those from Europe who wanted to come here changed their minds.

"We also had (to incur) additional cost for grounded aircraft and of course
we did have extra flights to clear the backlog of passengers," he told a media
briefing on the carrier's first-quarter results here Monday.

Tengku Azmil said MAS didn't make money out of the extra flights but
incurred losses as the airline had no choice but to undertake the exercise to
minimise the waiting time of those stranded.

"The ash clouds are back. The first time it happened it was about one week.
This round it is difficult to tell. We did see a close of European airspace
recently," he said.

He said MAS delayed a number of flights to Europe in order to ensure it
landed at scheduled destinations and not somewhere else.

"We have received news that some of the airspace have reopened and we have
re-timed flights while some are on schedule," Tengku Azmil said, adding the
closing of airspace was only for a short period and its impact would be fairly
minimal.

He also said if the airspace was closed for a extended period, like
previously, its impact on the airline would accumulate. (US$1=RM3.22)

-- BERNAMA