MALAYSIA-In a bid to lift its profits out of the red, Malaysian Airlines has unveiled a survival plan that will see the carrier cut loss-making routes, win back customers and set up a regional premium carrier.
Releasing plans last week, the carrier said in an online statement that the goal was to return to the black by 2013 and the first to achieving its goals includes axing loss-making services.
While the carrier didn’t highlight all the routes that will be cut, it did mention that Cape Town, Johannesburg and Buenos Aires were among the first to go. The ‘to shrink to grow’ attitude is following successful turnarounds of other airlines such as JAL and Garuda, stating the aggressive network cuts are necessary for survival.
Malaysia Airlines will also deploy 23 new aircraft equipped with state-of-the-art passenger amenities in 2012 in an effort to win back customers.
The launch of a new regional premium airline in 2012 to connect Malaysia to ASEAN destinations and key cities in South Asia and Greater China is also proposed to boost profits.
While facing a number of inherent challenges, Malaysia Airlines can leverage on its strengths including its award-winning cabin crew which consistently ranks in the top two positions by Skytrax, acknowledged as the industry’s benchmark.
The airlines competitive cost position will also be an added advantage for the airline.
“With the full support of our team in embracing the three organisational imperatives, Malaysia Airlines is confident that it will be able to successfully implement the Business Plan and realise the airline’s vision to become the preferred premium carrier,” Group Chief Executive Officer, Ahmad Jauhari Yahya said.
Releasing plans last week, the carrier said in an online statement that the goal was to return to the black by 2013 and the first to achieving its goals includes axing loss-making services.
While the carrier didn’t highlight all the routes that will be cut, it did mention that Cape Town, Johannesburg and Buenos Aires were among the first to go. The ‘to shrink to grow’ attitude is following successful turnarounds of other airlines such as JAL and Garuda, stating the aggressive network cuts are necessary for survival.
Malaysia Airlines will also deploy 23 new aircraft equipped with state-of-the-art passenger amenities in 2012 in an effort to win back customers.
The launch of a new regional premium airline in 2012 to connect Malaysia to ASEAN destinations and key cities in South Asia and Greater China is also proposed to boost profits.
While facing a number of inherent challenges, Malaysia Airlines can leverage on its strengths including its award-winning cabin crew which consistently ranks in the top two positions by Skytrax, acknowledged as the industry’s benchmark.
The airlines competitive cost position will also be an added advantage for the airline.
“With the full support of our team in embracing the three organisational imperatives, Malaysia Airlines is confident that it will be able to successfully implement the Business Plan and realise the airline’s vision to become the preferred premium carrier,” Group Chief Executive Officer, Ahmad Jauhari Yahya said.
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