MASKARGO TO SPEND RM1 BLN TO IMPROVISE PRODUCTS, COST STRUCTURE NEXT 3 YEARS

KUALA LUMPUR, May 20 (Bernama) -- Malaysia Airlines Cargo Sdn Bhd (MASkargo)
will spend more than RM1 billion over the next three years to improve its
products, efficiency and cost structure, said its managing director, Shahari
Sulaiman.

He said the company will be upgrading its Advanced Cargo Centre (ACC) at the
KL International Airport (KLIA) and introduce four Airbus A330 freighters.

The refurbishment and upgrading of the material handling control system at
the ACC will increase the current capacity by more than 40 per cent to one
million tonnes, Shahari said at the 15th MASkargo Megatonners Award event here
Friday night.

He said it will incorporate the state of the art technology and processes to
allow dynamic tracking and faster movement of the consignments within the
warehouse.

"The introduction of the Airbus A330 freighters will be a game changer where
we would be able to match the right capacity to the right markets," he said.

Shahari said the cost benefit of operating a fuel efficient twin engine
aircraft will allow it to grow into new markets within Asia.

The primary network will be to serve the intra Asia trade lanes which is
also the region with the highest growth rate, he said.

"With the phasing out of the classic freighters from our fleet at the end of
the year, MASkargo will have one of the youngest freighter fleets. This will
certainly help improve our on-time performance and augur well in reducing our
carbon footprint," he said.

MASkargo ended last year with total cargo revenues of RM2.39 billion, a 29.2
per cent increase over 2009, thanks to improvements in yield and load factors
and an increase in freighter capacity. It recorded a pre-tax profit of RM141.7
million.

Meanwhile, Deputy Transport Minister Jelaing Mersat said the government
will continue to facilitate the growth of the air cargo industry in Malaysia to
benefit all cargo operators.