Emirates “formidable” competitor: Malaysian Air chairman

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By TESTCustomwebLP TESTCustomwebLP October 4, 2010 14:38

Emirates “formidable” competitor: Malaysian Air chairman

Munir Majid, chairman of Malaysian Airlines, stated that Emirates had become a formidable competitor and finding ways to compete was difficult.

“Emirates is a formidable airline now, with probably the largest model fleet with pretty high standards and very expensive network. They also have a very good hub, which is Dubai,” Munir Majid was reported to have said in the sidelines of an economic forum in Dubai.

Emirates aggressive stance on product quality, fleet size and pricing, meant competing was hard for competitors such as Malaysian Air who did not have a strong balance sheet.

That said, he also stated that, the airline was in expansion mode following its extensive balance sheet restructuring. It is considering a new rights issue even though it slipped into the red in the second quarter of this year with net losses of MYR535 million ($173 million) due mainly to derivative losses from its fuel hedges. Its second quarter result shows its operating loss narrowed to MYR285.6 million from MYR425.6 million a year ago. But revenue was up 26% during the second quarter driven by strong load figures.

The airline was also expecting delivery of its first of six A380 in 2007 but that was pushed back until January next year, and now until 2012, which has significantly hampered the airline’s expansion plans.

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By TESTCustomwebLP TESTCustomwebLP October 4, 2010 14:38
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