All-round Doubts About MAS' Success.
There was a glorious past in MAS' chequered history when profits were taken for granted and its Golden Service was world renowned. What happened to all that? Now even a simple declaration of profit is questioned and MPs want to know whether the profit posted by the national carrier was attributed to the sharp increase in ticket prices or other surcharges! They are of the opinion that the airline made a quick recovery because it raised ticket prices, retrenched workers and sold assets including the MAS headquarters building.
"Everyone can make a profit in business if they raise ticket prices ... so we want the government to be more transparent about MAS' profit," said Datuk Raja Ahmad Zainudin Raja Omar (BN-Larut) in the Dewan Rakyat. The government however maintained that the profit gained by MAS was "the fruit of the airline's turnaround plan" implemented about a year ago," and it has been restored and is now able to cut costs and the profit will increase.
Through all this, 'close-one-eye' MP for Jasin Mohd Said Yusof managed to squeeze in a demand for MAS to revise downward its fares following the significant fall in the world's crude oil prices!
After five consecutive quarters of losses, MAS recorded a net profit of RM240.7 million in the third quarter ending Sept 30. It posted a net loss of RM366.4 million in the same quarter last year.
Group revenue during the quarter under review rose to RM3.63 billion against RM3.07 billion a year earlier.
The profit is partly attributed to a one-off gain of RM194 million from the sale of MAS' headquarters here and compensation received from the government. The company also saved cost after it cut unprofitable routes and reduced workforce.
The airline said passenger and cargo yields also improved tremendously since the implementation of its turnaround plan.
Its net loss in the first nine months of this year was RM257.9 million from RM532.6 million in the same period last year.
MAS is targeting to cut losses to RM620 million this year and to post a profit of RM50 million next year. It also expects to turn in a net profit of RM500 million in 2008. (-- BERNAMA)
***** Posting a RM500 million profit in 2008? Isn't that a little too optimistic? I'm sure that among the readers of this blog there will be some who are in the know about the aviation industry and especially on issues pertaining to MAS. It would be really great if you could enlighten us on what the real situation is and where MAS is heading.
Labels: Malaysia - General