ID :
189016
Thu, 06/16/2011 - 13:03
Auther :
Shortlink :
https://oananews.org//node/189016
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MAS CEO FORESEES DOUBLE-DIGIT GROWTH IN PROFITABILITY VIA ALLIANCE
KUALA LUMPUR (Bernama) - Malaysia Airlines foresees double-digit growth in profitability via its alliance with the third largest global airline group, OneWorld, says Chief Executive Officer Tengku Azmil Zahruddin.
He said the company may also have to take delivery of aircraft, earlier than scheduled, as the alliance may open up opportunities to fly to new destinations.
"There will be significant (improvement) in revenue (and) double digit growth in profitabilty," he said at a press conference here Thursday.
The primary benefit would be seamless products, he said, adding that, besides improvement in revenue and profits, the alliance would also result in cost savings.
He cited lounge services at airport as an area which could benefit in terms of upgrade and improvement.
"When a number of member (airlines) fly to a particular airport, they can join together and share the cost of using one lounge compared with each airline having respective lounges and check in counters," he explained.
MAS reported a pre-tax loss of RM238 million for the first quarter ended March 31, 2011 compared with RM320 million in pre-tax profit recorded in the same quarter last year. Revenue stood at RM3.19 billion, down from RM3.3 billion, registered previously. (US$1=RM3.04)
OneWorld's other alliances are Airberlin, AmericanAirlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Kingfisher, Lan, Malev, Mexicana, Qantas, Royal Jordanian and S7 Airlines, which will provide MAS access to 900 code sharing destinations in 150 countries.
Tengku Azmil said although it usually took about 18 months to integrate the system with the alliance, MAS aimed to do it within a year, meaning those flying MAS could enjoy the seamless connection as soon as next year.
"There will be some investment to integrate the system," he said.
Asked on fleet deployment, he said although it was too early to access it now,"we may find that we need more planes more quickly."
MAS ordered 35 of the Next-Generation 737-800 airplanes in 2008,to be delivered in stages. The airline also acquired purchase rights for an additional 20 Next-Generation 737-800s.
It has also ordered six A380s with delivery expected to begin in 2012.
He said the alliance was also timely,"as we get more and more planes. (We will see) where we can deploy the planes in the best way possible."
Tengku Azmil also explained that the airline does not need to discuss with the alliance to expand its destination.
"We can fly where ever we want provided we have the traffic rights (and) with the large network that the alliance provides some destinations, which were not viable before, may make sense now and we may start flying there," he added.
However, he said it was difficult to name them at this point of time.
He also said that there were are no fuel arrangement with the alliance.
Asked how it would impact on the maintenance, repair and overhaul (MRO) business, he said, there could be a business opportunity although there was no compulsion for the alliance's members to do maintenance within the group.
He said the company may also have to take delivery of aircraft, earlier than scheduled, as the alliance may open up opportunities to fly to new destinations.
"There will be significant (improvement) in revenue (and) double digit growth in profitabilty," he said at a press conference here Thursday.
The primary benefit would be seamless products, he said, adding that, besides improvement in revenue and profits, the alliance would also result in cost savings.
He cited lounge services at airport as an area which could benefit in terms of upgrade and improvement.
"When a number of member (airlines) fly to a particular airport, they can join together and share the cost of using one lounge compared with each airline having respective lounges and check in counters," he explained.
MAS reported a pre-tax loss of RM238 million for the first quarter ended March 31, 2011 compared with RM320 million in pre-tax profit recorded in the same quarter last year. Revenue stood at RM3.19 billion, down from RM3.3 billion, registered previously. (US$1=RM3.04)
OneWorld's other alliances are Airberlin, AmericanAirlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Kingfisher, Lan, Malev, Mexicana, Qantas, Royal Jordanian and S7 Airlines, which will provide MAS access to 900 code sharing destinations in 150 countries.
Tengku Azmil said although it usually took about 18 months to integrate the system with the alliance, MAS aimed to do it within a year, meaning those flying MAS could enjoy the seamless connection as soon as next year.
"There will be some investment to integrate the system," he said.
Asked on fleet deployment, he said although it was too early to access it now,"we may find that we need more planes more quickly."
MAS ordered 35 of the Next-Generation 737-800 airplanes in 2008,to be delivered in stages. The airline also acquired purchase rights for an additional 20 Next-Generation 737-800s.
It has also ordered six A380s with delivery expected to begin in 2012.
He said the alliance was also timely,"as we get more and more planes. (We will see) where we can deploy the planes in the best way possible."
Tengku Azmil also explained that the airline does not need to discuss with the alliance to expand its destination.
"We can fly where ever we want provided we have the traffic rights (and) with the large network that the alliance provides some destinations, which were not viable before, may make sense now and we may start flying there," he added.
However, he said it was difficult to name them at this point of time.
He also said that there were are no fuel arrangement with the alliance.
Asked how it would impact on the maintenance, repair and overhaul (MRO) business, he said, there could be a business opportunity although there was no compulsion for the alliance's members to do maintenance within the group.
