Malaysia Airlines shows steady progress on turnaround plan

 |Sep 8, 2016
Moving forward, MAB plans to intensify its sales and marketing efforts and aggressively engage with travel agents, a key target audience in Malaysia.
Moving forward, MAB plans to intensify its sales and marketing efforts and aggressively engage with travel agents, a key target audience in Malaysia.

Malaysia Airlines Bhd (MAB) is showing steady progress on the turnaround plan and working on generating more revenue, whilst, maintaining strict cost discipline.

Chief Executive Officer Peter Bellew said the focus so far had been on managing costs and continuing the product improvements in food, on time performance and new business class seats.

“For the second half of 2016, we are working hard on revenue generation with more aggressive marketing and sales initiatives, whilst maintaining strict cost discipline,” he said in a statement here today.

The airline posted a weaker performance for the second quarter due to soft demand during Ramadhan, with the passenger load factor down to 68.6 per cent from 68.9 per cent in the first quarter this year.

Passenger yields fell to 22.5 sen from 22.6 sen.

Punctuality, a core goal of the operations team, measured by On-Time-Performance ratio (OTP), remained stable during the period and reached a year-to-date level of 82 per cent.

MAB said external factors, such as delays in immigration processing and infrastructure constraints at Kuala Lumpur International Airport did, however, have an impact on the OTP.

On fleet enhancements, an additional two Airbus A350-900 aircraft were leased for delivery in 2018, while construction for the first of six new Airbus A350-900 aircraft commenced in June at Airbus in Toulouse, for delivery in October 2017.

For the third quarter, the airline’s planned passenger fleet will consist of 54 Boeing 737-800, 15 Airbus A330-300 and six Airbus A380.

Moving forward, MAB plans to intensify its sales and marketing efforts and aggressively engage with travel agents, a key target audience in Malaysia.

“Forward booking patterns are already strengthening in the third quarter and we expect an improved performance in business class loads in the fourth quarter,” it added.

Source: Bernama