Malaysia Airlines : MH : MAS

Malaysia Airlines returned to the red in the third quarter, reporting a MYR298.9 million ($88.2 million) loss that represented a reversal from the restated MYR38.6 million surplus earned in the year-ago period and its second deficit in three quarters this year.
A precipitous 26.8% year-over-year plunge in operating revenue to MYR2.89 billion, plus a MYR202.1 million loss on fuel hedges, proved too much for MAS to overcome. Nevertheless, MD and CEO Azmil Zahruddin said that "fuel prices are on an upward trend [and] hedging is the right policy as fuel prices remain volatile."
He added that MAS is "seeing some signs of recovery. Our strategy [is to] continue to strengthen our domestic and ASEAN operations and position ourselves for the recovery and growth of the long-haul sector" while offering "competitive and compelling fares." Domestic capacity is set to rise 10% during the current quarter and forward bookings "are looking good," he said.
Third-quarter operating costs fell 25.5% to MYR3.03 billion and the operating loss of MYR73.3 million compared to a MYR44.3 million profit in the 2008 third quarter. MAS carried 3.3 million passengers during the period and load factor was 76.7%. The airline operation suffered a MYR35.7 million loss, cargo a MYR36.9 million loss and the company's catering arm was MYR1.1 million in the black.
MAS plans to add two leased 737-800s next year and has deliveries of purchased aircraft scheduled through 2014.
Nine-month loss of MYR117.5 million was a reversal from the MYR199.1 million profit in the year-ago period. Operating deficit of MYR632 million compared to a MYR239.2 million profit last year.
"The outlook for the fourth quarter 2009 continues to be challenging," it said. "There is an early sign of improvement in passenger and cargo traffic, partly stimulated by intensive marketing campaigns, but yields remain under pressure." MAS said its "on target" expectation for the full year ranges from a MYR499 million loss to a MYR50 million profit.

KUALA LUMPUR, Nov 26, 2009Malaysia Airlines said Thursday Airbus was delaying delivery of the carrier's first A380 superjumbo aircraft by eight months.

[Vous devez être inscrit et connecté pour voir ce lien] will get its first Airbus [Vous devez être inscrit et connecté pour voir ce lien] super-jumbo jet eight months later than previously planned, the carrier's managing director and chief executive [Vous devez être inscrit et connecté pour voir ce lien] Thursday.
"We have never requested for the A380s to be delayed; all delays have been at Airbus' request," Azmil Zahruddin said in an email, according to Dow Jones.
The delay pushes Malaysia's first A380 delivery from January 2011 to August 2011. Malaysia has six A380s on order, with Airbus previously pushing back delivery of the first aircraft from 2007 to 2011, Dow Jones reported.
Airbus has encountered trouble ramping up the pace of A380 production, in part because of the large amount of customization of each plane.

Malaysia Airlines (MAS) has ordered 15 [Vous devez être inscrit et connecté pour voir ce lien]-300s, with options to purchase another 10, in a total order worth $5 billion.
The aircraft will be delivered from 2011 to 2016, and will serve the South Asia, China, North Asia, Australia and Middle East markets, says MAS.
The A330 will complement the airline's incoming fleet of six A380s and 35 [Vous devez être inscrit et connecté pour voir ce lien]-800s, says MAS managing director and CEO Azmil Zahruddin.
He adds: "The A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the 737-800 will be used to strengthen our domestic and regional routes.
MAS expects to receive all its new aircraft by 2016, says Zahruddin.
"Our strategy is to transform from a 100% leased fleet to owning at least a third of the aircraft in our core fleet. We will fund the purchases through a combination of a proposed rights issue and borrowings," he adds.
MAS expects to gain annual savings of 300 million ringgit ($87.4 million) when it receives its 15 A330s, says the airline.
It is ordering the new version of the aircraft, which offers improved cabin comfort and aircraft performance, adds MAS.

Jeannot a écrit:Malaysia commande 15 A330-300s et place une option pour 10 avions supplémentaires.

Malaysia Airlines (MAS) has ordered 15 [Vous devez être inscrit et connecté pour voir ce lien]-300s, with options to purchase another 10, in a total order worth $5 billion.
The aircraft will be delivered from 2011 to 2016, and will serve the South Asia, China, North Asia, Australia and Middle East markets, says MAS.
The A330 will complement the airline's incoming fleet of six A380s and 35 [Vous devez être inscrit et connecté pour voir ce lien]-800s, says MAS managing director and CEO Azmil Zahruddin.
He adds: "The A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the 737-800 will be used to strengthen our domestic and regional routes.
MAS expects to receive all its new aircraft by 2016, says Zahruddin.
"Our strategy is to transform from a 100% leased fleet to owning at least a third of the aircraft in our core fleet. We will fund the purchases through a combination of a proposed rights issue and borrowings," he adds.
MAS expects to gain annual savings of 300 million ringgit ($87.4 million) when it receives its 15 A330s, says the airline.
It is ordering the new version of the aircraft, which offers improved cabin comfort and aircraft performance, adds MAS.

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Airbus did not release a statement. A spokesperson told ATWOnline only that "this decision by MAS underscores once again the ongoing popularity of the A330 with airlines around the world" and that the company "look[s] forward to finalizing this order soon.".........

MAS currently operates 13 747-400s, 17 777-200s, 11 A330-300s, three A330-200s and 37 737-400s. Zahruddin said the A330 "can carry more payload and has a longer range compared to our Boeing 777, which we are using now."
............
by Brian Straus

Rolls-Royce, the global power systems company, has signed a long term TotalCare service agreement to support engines that power Malaysia Airlines’ fleet of 17 Boeing 777 aircraft.

The agreement, which covers Trent 800 engines, is the first time that Malaysia Airlines operations will be supported by TotalCare support.

TotalCare long-term service agreements are designed to minimise customer financial risk and improve operational performance and reliability, allowing operators to concentrate on their core business. Such agreements are now in place or being finalised, for 100 per cent of Trent engines in service in the South East Asia region.

Globally, more than 2,600 Trent engines in service and on order are covered by TotalCare.

Malaysia Airlines Chief Executive Officer and Managing Director YM Tengku Dato’ Azmil Zahruddin, said: “We are committed to improving our customer service while at the same time continuing our drive to manage costs more effectively. Our contract with Rolls-Royce provides us with greater ability to predict and manage our engine maintenance and overhaul costs.”

Jim Sheard, Rolls-Royce Senior Vice President Airlines – South East Asia, said: “We are delighted Malaysia Airlines is now part of the TotalCare family of operators. Our ability to evaluate Trent engine data from the worldwide fleet, and our ability to work with each customer to plan maintenance operations, will significantly help Malaysia Airlines to meet its operational and financial goals.”

In 2005, Malaysia Airlines ordered Rolls-Royce Trent 900 engines for six Airbus A380 aircraft that are due to enter service next year.
Rolls-Royce has a leading 50 per cent market share on modern, widebody aircraft, with more than 1,600 Trent engines in service on more than 600 aircraft and a further 2,500 on order. Each of the six members of the Trent family have either been the first or launch engine on the airframe, or have gone on to take the leading market share.

The national carrier reported a small operating profit of RM3.8 million for the quarter under review with its traffic increasing 12%, outperforming the Association of Asia Pacific Airlines’ (AAPA) 17 member airlines’ growth of 4%.


The increase in traffic is attributable to aggressive domestic and global sales campaigns, competitive pricing coupled with the seasonal peak travel period.

The result: the number of passengers carried in Q409 was 3.4 million, the highest
since Q108, boosting the load factor to 76.5% compared to 65.3% in Q408.


Two other contributing factors were a RM500 million or 13% reduction in operating costs mainly due to the decrease in fuel prices and a rebound in cargo business which saw MASkargo’s revenue increasing 7% to RM414 million.


The balance sheet remains healthy with cash and negotiable deposits of some RM2.95 billion as at 31 December 2009.

On an annual basis, MAS reported a net profit of RM490 million for FY2009 compared to RM244 million net profit a year earlier.
This was primarily attributed to derivative mark-to-market on fuel gains of RM1.15 billion.

Managing Director/ Chief Executive Officer, Tengku Dato’ Azmil Zahruddin said, “We have been resilient in the face of adversity as shown by our modest Q409 net profit.
We have focused on bringing in the sales, proactively reducing capacity to cope with the fall in demand and building strategic partnerships.

“For 2010, we are positioning ourselves to capture the growth in light of signs of recovery. One of the ways we are doing this is through the modernization of our fleet and expanding our network – timely in the context of expected growth in the Asia Pacific region.”

According to the International Air Transport Association, intra-Asia Pacific travel had eclipsed the number of travelers in North America to become the world’s largest aviation market.

Asia Pacific’s travelers numbered 647 million compared to the 638 million who travelled within North America. By 2013, an additional 217 million travelers are expected to take to the skies within Asia Pacific.

“In January, we received shareholders’ approval for a rights issue to raise an expected amount of RM2.67 billion to partially fund our future fleet growth and expansion. Proceeds will be used for our fleet renewal and working capital. This gives us a strong and sustained platform for growth as we transform from a 100%
leased fleet to owning at least a third of our aircraft,” he said.

MAS’s new fleet will comprise up to 17 ATR72-500, 55 B737-800, 25 A330-300 and 6 A380s.

The national carrier will start receiving its new aircraft this year, with the delivery of 3 B737-800s.

By 2015, all the aircraft ordered will be in, and MAS expects to have one of the youngest, most fuel efficient and environmentally friendly fleets in Asia.

The A380 will serve key long haul destinations such as London and Sydney, the A330 medium haul markets, while the B737-800 will be used to strengthen the domestic and regional routes.

“To capitalize on the expected growth, we are adding frequencies to key destinations starting March this year.

When our new aircraft come in, we’ll be able to progressively increase capacity.

The better operating cost advantage in operating the new aircraft works in our favour,” Azmil also said.

Commencing 28 March 2010, MAS will be increasing frequencies to Jakarta, Bangkok, Saigon and Bangalore.

There will also be additional flights to Perth, Auckland, Paris and Johannesburg.
In addition, passengers flying to Brisbane will enjoy direct flights.

He added,
“We are also evaluating the feasibility of introducing new destinations. We are in the process of assessing the route profitability, and will be able to share more details come the second half of the year.”

The 2010 prospects are also bright for MASkargo and the MRO business.

With a rebound in cargo demand in Q409 led by the Asia Pacific region, MASkargo is looking at growing capacity by more than 10% in 2010.

“We are developing our partnership with HNA Air Group in China, growing our freighter network and upgrading the Advanced Cargo Centre at KLIA. New initiatives are also being introduced to increase our capacity and efficiency as an airline and ground handler at KLIA,” he said.

In January, MAS’s JV MRO company, MAS-GMR Aerospace Engineering Company Ltd, signed a Memorandum of Understanding with Jet Airways. This is to provide exclusive heavy maintenance services to Jet’s fleet over the next 10 years with an option of another 5 years.

In addition, MAS has also sealed a 3-year deal to provide maintenance support to SpiceJet, India’s low cost carrier.

At the same time, the airline will continue to enhance its systems and infrastructure to ensure that customers enjoy a seamless journey.

These include a RM480 million investment in the Passenger Services System over 10 years to enable faster service delivery, faster online purchase and new services.

A key service enabled by the PSS is flymas.mobi, one of the most comprehensive mobile phone functionalities available to airline passengers anywhere in the world.

“All this - capital raising, fleet refresh programme, continuous investment in new systems and infrastructure – position us in high gear for expansion and growth. I am looking forward to the exciting times ahead,” Azmil added.


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Malaysian Airline System Bhd, the national carrier, may introduce “premium economy” seats in its double-decker Airbus SAS A380s as tighter corporate travel budgets damp demand for business-class seating.

“A premium-economy cabin in our A380s would provide another option for our passengers,” Amin Khan, the carrier’s senior general manager for network and revenue management, said in an e-mailed reply to Bloomberg questions today. It would serve “those organizations that maintain economy-class travel policy for their employees, even after the recession.”

The carrier may include premium-economy class in its six on-order A380s to lure travelers seeking more comfort than is available in coach at prices lower than in business class. Corporate travelers forced to fly coach during the recession may never return to business-class cabins, as companies seek permanent reductions in spending on travel, the International Air Transport Association said last month.

Passenger yield, or the average price a traveler pays to fly one kilometer, won’t return to pre-crisis levels “just yet” even though business travel has begun to recover, Amin said. “During the recession we observed a shift down from business to economy,” he said.

Malaysian Air may spend RM460 million to furnish its A380s, a Daily reported in January, citing a circular to shareholders.

The carrier gained as much as 8.2 per cent to RM2.25 at noon break. Of 16 analysts tracked by Bloomberg data over the past 12 months, two recommended investors buy the stock, eight had “sell” ratings, while the remainder said

KUALA LUMPUR (Dow Jones)--La compagnie aérienne Malaysian Airline System Bhd. (3786.KU) a annoncé mardi la passation d'une commande ferme de 17 Airbus A330, à laquelle s'ajoute la commande de deux appareils cargos A330-200F supplémentaires.
La signature du contrat d'achat devrait intervenir mercredi, a précisé Malaysian Airline.
La compagnie aérienne exploite actuellement 14 A330, dont 11 A330-300 et 3 A330-200.
Airbus est une filiale d'European Aeronautic Defence & Space Co. NV (EAD.FR).

Malaysia Airlines (MAS) has ordered two Airbus A330-200 freighters, along with a previously announced order for up to 25 A330-300 passenger widebodies.
It has placed firm orders for two A330-200Fs with options for another two. The first freighter will join the MASKargo fleet in September 2011, says MAS.
The airline signed a memorandum of understanding with Airbus in December for firm orders of 15 A330 passenger aircraft, and 10 options. Deliveries of these will begin in the first half of 2011, says the carrier.
"The new freighters will enable us to better serve the intra-Asia route, and offer direct services to Europe from India and Bangladesh. This complements our expansion plans in China, and will strengthen our position as a key niche player in the region," says MAS managing director and CEO Azmil Zahruddin.
MASkargo will fly the new freighters on sectors of up to 3,200nm, says the carrier. The aircraft will be able to carry payloads of almost 70t, it adds.
MAS' new A330 passenger aircraft will be configured with 283 seats in a two-class layout, says the airline.
"The A330-300 will become the mainstay of the carrier's medium haul passenger fleet and will be used on services to destinations across the Asia Pacific region, as well as up to the Middle East," says MAS, which already operates 14 A330s.
MAS plans to expand capacity on some routes from 28 March, and will add more flights to its services to Paris, Auckland and Perth. It expects to announce new destinations from the second quarter of this year, it adds.

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