MAS axes 8 loss-making routes, sees profit impact of RM302m

by **hlk** Thu 15 Dec 2011, 08:03

KUALA LUMPUR (Dec 14): Loss-making MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) will axe eight loss-making routes under its route rationalisation exercise which will take effect early 2012.

MAS group CEO Ahmad Jauhari Yahya said on Wednesday: “The withdrawal
was based on our own independent internal profitability and yield
analysis. This accounts for almost 12% of our passenger capacity and we
estimate that the ongoing route rationalisation will improve loads,
increase yields and have a profit impact of RM220 million to RM302
million for 2012.”

KUALA LUMPUR (Dec 14): Loss-making Malaysian Airline System Bhd (MAS)
will axe eight loss-making routes under its route rationalisation
exercise which will take effect early 2012.

MAS group CEO Ahmad Jauhari Yahya said: “The withdrawal was based on
our own independent internal profitability and yield analysis. This
accounts for almost 12% of our passenger capacity and we estimate that
the ongoing route rationalisation will improve loads, increase yields
and have a profit impact of RM220-RM302 million for 2012.”

The route rationalization exercise takes effect early next year and
involves the withdrawal from the following loss-making routes:

Effective from Jan 6: Daily flights Kuala Lumpur – Surabaya vv B737 route

Effective Jan 10: Thrice-weekly Kuala Lumpur – Dubai vv A330 route

Effective Jan 12: Twice-weekly Kuala Lumpur – Karachi – Dubai vv A330 route

Effective Jan 13: Twice-weekly Kuala Lumpur – Dubai – Damman vv A330 route

Effective Jan 30: Daily Langkawi – Penang – Singapore vv B737 route

Effective Jan 31: Thrice-weekly Kuala Lumpur – Johannesburg vv B777 route

Effective Feb 1: Twice-weekly Kuala Lumpur – Cape Town – Buenos Aires vv B747 route

Effective Feb 2: Thrice-weekly Kuala Lumpur – Rome vv B777 route

Jauhari said the route rationalisation was expected to have minimal
impact on Malaysia's position as a top tourist destination in Asia “as
we will work aggressively with our code share partners”.

He said through MAS’ existing arrangements with them, MAS would
continue to promote connectivity between Malaysia and key international
destinations.

“We also hope to return to these markets after we have stabilised our business,” he added.