Malaysia Airlines (MAS) should focus on routes that are more profitable whilst maintaining capacity discipline.
Flightglobal Asia Managing Editor, Greg Waldron, said this is especially important for the company to increase its yields and maintain its load factor.
MAS load factor currently is at a high of 76.8 percent however its profitability has been falling.
The company saw its net loss widening by 277.4 per cent to RM1.2 billion for the year ended December 31, 2013 from RM432.6 million in 2012, due to higher depreciation and finance charges, coupled with unrealised foreign exchange (FOREX) loss and high fuel cost.
In an interview with Astro AWANI on Tuesday, Greg who commented on the national carrier’s prospects in the future said that the company needs to increase the trust and branding of the company.
“Airlines have recovered before, they go through a major restructuring, if you look at what happened to Japan airlines or Garuda, they both are big nationalized carriers suffering years of losses but after significant restructuring, they streamlined their operations and they were able to return to a degree of profitability,” he said.
However, he stressed that now is not the best time to reconsolidate the company as the company will need to manage the current crisis.
“However months down the road there would be an opportunity to communicate other messages but right now their priority is helping the families, but most importantly finding out what happened to MH370,” he said.
Astro AWANI tried to contact local aviation analysts in getting their view on this matter however none wanted to comment.
Flightglobal Asia Managing Editor, Greg Waldron, said this is especially important for the company to increase its yields and maintain its load factor.
MAS load factor currently is at a high of 76.8 percent however its profitability has been falling.
The company saw its net loss widening by 277.4 per cent to RM1.2 billion for the year ended December 31, 2013 from RM432.6 million in 2012, due to higher depreciation and finance charges, coupled with unrealised foreign exchange (FOREX) loss and high fuel cost.
In an interview with Astro AWANI on Tuesday, Greg who commented on the national carrier’s prospects in the future said that the company needs to increase the trust and branding of the company.
“Airlines have recovered before, they go through a major restructuring, if you look at what happened to Japan airlines or Garuda, they both are big nationalized carriers suffering years of losses but after significant restructuring, they streamlined their operations and they were able to return to a degree of profitability,” he said.
However, he stressed that now is not the best time to reconsolidate the company as the company will need to manage the current crisis.
“However months down the road there would be an opportunity to communicate other messages but right now their priority is helping the families, but most importantly finding out what happened to MH370,” he said.
Astro AWANI tried to contact local aviation analysts in getting their view on this matter however none wanted to comment.
