Wednesday, August 27, 2008

MAS remains focused on cost savings

Malaysia Airlines (MAS) is not looking to expand its routes at present as it is still focusing on cost savings in the face of high fuel prices.

Chairman Tan Sri Dr Munir Majid said the impact of higher fuel prices alone cost the airline an extra RM780mil in the last quarter ended June 30.

“At the moment we are not looking at new routes. Although the oil price has come down a little from its highest levels, it is still higher than the average price last year, so we’re still suffering,” he told reporters after opening MAS’ Pintar camp for school students at Kem Pueh, Sematan, about 120km from here on Wednesday.

While fuel prices remained high, MAS still had to control its costs and implement fuel-saving measures, he said.

“In that situation your management resources are focused on cost savings, on maintaining your survivability and living to fight another day. So expansion takes a back seat,” he said.

Munir also said the airline was not in emergency or panic mode but was in control of the situation.

He said MAS was doing well despite the difficult circumstances and managed to achieve a profit in the second quarter of the year, even if it was down by 65% compared with the previous correspondingperiod.

“We are one of the top airlines in the world in terms of financial survivability.

“Being able to survive financially is the most important thing, from which we can do other things including corporate responsibility programmes like this Pintar camp,” he said.

Source : STAR
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