Bangkok--29 May--Centre for Asia Pacific Aviation
Malaysia Airlines (MAS) is set to surge past its full year net profit target (of USD15 million) for the 12 months ending 31-Dec-07, thanks to its third successive quarterly profit. The carrier is now optimistic of a full-year net profit of up to USD200 million, as the benefits of its three-year restructure, involving route and staff cuts, continue to flow.
The carrier is now poised to complete a long-awaited fleet renewal plan, with an RFP for up to 55 widebodies to be launched shortly. MAS is reportedly in the market for A350 or B787 equipment, which could signal a downsizing in the average aircraft size in its fleet. All B747s and B777s are due to be retired by 2014, while the carrier has also not ruled out canceling its order for six A380s, placed by the previous management.
But intense competition is ahead on all fronts.
MAS will be taking on AirAsia Long Haul from Sep-07 and keys to future success could lie in segmenting the market, offering more frequencies and connectivity, a premium inflight service and non-stop operations — all major factors in finalising a long-term fleet renewal plan.
MAS is also in the market for a similar number of narrowbody aircraft and could close on an order soon. But major competitor, AirAsia, has current orders for three times the number of narrowbody aircraft planned by MAS, as it seeks to dominate the ASEAN region with its Malaysia, Indonesia and Thai units.
MAS’ competitiveness will increase with an efficient fleet of new aircraft, but Idris Jala, whose leadership has been key to getting the airline to this point, still has more work to do.
About Centre for Asia Pacific Aviation
The Centre for Asia Pacific Aviation (CAPA) was founded in 1990 and has since built an international reputation as the leading specialist aviation consultancy in the Asia Pacific, the Indian Subcontinent and Middle East regions. CAPA Consulting’s strategic advisory services are supported by the extensive information and data services provided by the Centre’s Market Research Unit to aviation industry leaders every day. The Centre also holds regular Aviation Leadership Summits, which provide unique opportunities for the exchange of ideas and experiences.
Head Office, Sydney:
Derek Sadubin, Chief Operating Officer
Aurora Place, Level 36, 88 Phillip St Sydney
PO Box N777, Grosvenor Place Sydney, NSW Australia 2000
Email: [email protected]
Southeast Asia Regional Office:
Alice Goh, Regional Director, Southeast Asia
Email: [email protected]
Indian Subcontinent and Middle East Office:
Kapil Kaul, CEO Indian Subcontinent & Middle East
Email: [email protected]
UK/Europe Office:
David Bentley, UK Associate
Email: [email protected]
North America Regional Office:
Martti Raito, Regional Director, North America
Email: [email protected]
North Asia Representatives:
Korea: Kyung-sup Lee. Email: [email protected]
Japan: Reiko Sonoyama. Email: [email protected]
More information is available on the Centre’s website: www.centreforaviation.com