Malaysian airline, the chief airlines of Malaysia is running in loss for more than seven years. Though the company has been making predictions and has taken several measures to make the company profitable, year after year the company is moving into losses. What is wrong? The operations, the management, the service, or what else.. Let us have a look into the matter in detail.
A stunning loss in 3 months as on 30 June 2005 of MYR280.7m has been reported by Malaysian Airline authorities. May be because of the rise in fuel costs .A loss in excess of MYR 1bn may have been recorded by Malaysia Airlines for 2005, it has been claimed.
An unnamed official quoted by Dow Jones Newswires has stated that the carrier reported a loss of up to MYR552m for the fourth quarter of 2005, making the airline's full year loss worse than the predicted, to a figure of MYR803.1m average loss.
All these reports states that the company is moving into losses year after year and it is certain that the company is making losses of far expected.
Even at the time of undergoing losses and even after recognizing the fact that the company is moving into a worse situation, the measures undertaken by the company is strange. According to the Business Times, Malaysian Airlines is considering replacing its Fokker aircraft with ten new turbo-prop aircraft, 13 new regional aircraft or a combination of the two in a deal that could be worth up to USD320m.
Malaysian Airlines System will reportedly purchase six doubler-decker A380-800 superjumbo jet aircraft from European manufacturer Airbus SAS.Under an agreement reached between the carrier's parent company, Penerbangan Malaysia Bhd, and Airbus, Malaysia Airlines will take delivery of three of the aircraft in 2007, with the rest scheduled for delivery in 2008.
Is this a right solution for the company to wake up from the loss making situation? And where will they find the source of money to buy them? Would an increase in the fair charges help the company to reduce its losses or to make profit? Malaysian Airline System Bhd has said that it will raise fuel charges on long-haul routes by 38% to USD50 for one-way tickets. The fairs have been increased to many routes with the reasoning of increase in fuel charge. Would this bring a change to the situation? If it does then its good … else the company needs to think about the worst case scenario … and they exactly know what it will be and under current situation that’s not far….
(http://findarticles.com/p/articles/mi_m0CWU/is_2004_Sept_13/ai_n6191472)
(http://findarticles.com/p/articles/mi_m0CWU/is_2003_May_20/ai_102044402)
(http://findarticles.com/p/articles/mi_m0CWU/is_2003_Jan_10/ai_96325109)
3 comments:
it is really amazing that even after having these much resources MAS is under loss for 7 years and has not yet been able to cope with the situation.
this article throws light to common man's knowledge....n u have collected enough matters too....ofcourse,this can add something to d readers knowledge about the problems faced by malaysian airlines...good work
nice work man,.... even i didnt knew about such matters thoguh am a tech guy... well surely all thinsk that MAS is rich n have lot n lots of money... but wat if they fail.... cant even think of it .... and ur topic is resourceful man..... newys thnkz to u ... coz me too got to knw tat such a thing si hapening ...
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