Bangkok--28 Nov--Centre for Asia Pacific Aviation Malaysia Airlines’ (MAS) hub-and-spoke network strategy has been credited with helping the carrier post strong profit gains in the current financial year, despite high fuel prices. The airline’s third quarter operating profit surged 254%, while net profit increased 52% on a 12% rise in passenger revenue, while yields rose 7%. Partnerships have been key to the airline’s network strategy. MAS recently reached a comprehensive codeshare alliance with new SkyTeam member, China Southern Airlines — its tenth such partnership in the past two years alone. The growing network of partners has allowed MAS to retain a presence in several long-haul markets where it has suspended its own loss-making routes and focus its efforts on serving the fast-growing ASEAN, China, India and Middle East markets. The airline’s partners now provide almost one quarter of total MAS seat inventory. Overall, MAS has shrunk back to profitability, as the following traffic index shows. Domestic operations have been significantly curtailed, thanks to last year’s domestic route reallocation to AirAsia, while international passenger numbers are currently below levels of a couple of years ago. MAS is meanwhile close to signing further codeshare deals in India and Turkey and has even foreshadowed closer cooperation with low cost long-haul start-up, AirAsia X. It hopes to coordinate international routes to be flown by each airline. Overall, MAS has codeshare partnerships with 25 airlines, including seven current members of the Star Alliance, three from SkyTeam and two from oneworld. Global alliance participation is a future goal for the airline, although its bilateral partnerships list indicates that the carrier’s options are wide open. MAS is now in a position to order new aircraft. A long-awaited order for new narrowbody and widebody aircraft could be placed in Jan-08, to help the carrier replace and grow its fleet. Rising fuel costs and increasing competition, including on the Kuala Lumpur-Singapore routes (from Feb-08) will pose challenges for MAS, although the airline is confident that, based on the strong performance of the first nine months of the year, full year earnings will “exceed the scorecard for 2007”.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 4, 88 Phillip St Sydney PO Box N777, Grosvenor Place Sydney, NSW Australia 2000 Email: [email protected] Southeast Asia Regional Office: Richard Pinkham, 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