Khazanah releases more details on MAS restructuring

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By TESTCustomwebLP TESTCustomwebLP September 8, 2014 15:58

Khazanah releases more details on MAS restructuring

Malaysian state investment fund Khazanah Nasional has released further details of its plans to restructure Malaysian Airlines System that revolve around large-scale job cuts, contracting the airline’s route network and changing its fare structure.

Sources within Khazanah told local media that MAS was also likely to replace its ageing fleet of B777s with newer Airbus A330s and A350s to maintain medium-haul services, particularly within Asia.

The airline may also sell its six A380s, which it uses on services to London, Paris and Sydney, to stem the losses it makes on operating the type.

“If they keep the six A380s, then I’m convinced they will never make money. In my view, that’s the single biggest obstacle for them to make the yields positive,” said Shukor Yusof, an analyst at Malaysia-based aviation consultancy Endau Analytics.

MAS is also expected to increase aircraft utilisation rates and staff productivity, which would help boost revenue while limiting costs under Khazanah’s plan.

Khazanah has also stated it wants the airline’s cost per average-seat-kilometre (CASK) to be within 15% of the region’s LCC sector, on a par with Middle East carriers such as Emirates, and below regional competitors like Singapore Airlines and Cathay Pacific.

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By TESTCustomwebLP TESTCustomwebLP September 8, 2014 15:58