MALAYSIA AIRLINES TODAY

Last week, Malaysia Airlines’ Group announced a net loss of RM527 million for the second quarter 2011 attributed by the high fuel cost. The same reason was given for their loss of RM238 million in the first quarter of the year. It is hard to believe that our National Airlines could incur such heavy losses comparing to the huge profits made by other airlines, like, Cathay Pacific and Singapore Airlines . 

MH new B737-800

    Singapore Airlines

Dragon Air - a wholly owned  subsidiary of Cathay Pacific. 

A Cathay Pacific B747-400. 
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All these Airlines are flying the same skies, having the same sexy young Asian girls, and serve about the same type of Asian and Western food, yet Cathay Pacific and Singapore Airlines are making tons of money, while Malaysia Airlines is the sole money loser.

Even, Qantas reported a net profit of AUD239 million for the first half ending December 2010 and they forecast a much better earning in 2011.

I flew to Brisbane and returned via Melbourne on Malaysia Airlines and both ways were full. It was reported that Malaysia Airlines achieved a very healthy load factor of 76% in the first quarter and 75.5% in the second and yet they lost money! How come? Any load factor above 70% should be making money. 

Malaysia Airlines on the surface showed that they have done a lot of cost cutting exercises to trim down the operating cost. For example, they have downgraded their International in flight meals from "premium" to "economy". Their meals are simple and cheap comparing to other airlines. In reality, have they cut the meal cost or is it just a show when they are over-charged by caterers, especially the Sky Chef in KLIA.     

Malaysia Airlines should have maintained their own flight kitchen in KLIA, instead of selling it to Sky Chef under political pressure. Malaysia Airlines should cater not only for their own flights in KLIA but also all other International Airlines that stop-over there. It can not go wrong as all airports' caterers in the world are making money!

It is unbelievable Malaysia Airlines blamed the high fuel cost resulting the heavy losses. I believed that there are many other factors, one of them, is the political/governmental interference in the management of the airline. I strongly believed that Malaysia Airlines should be able to turn around and be profitable when the political interference stops. A team of "good" managers who are familiar with the  airlines industry should be brought in to wipe out the "red" figure. Get the right people like those in Singapore Airlines or Cathay Pacific. 

Will the earning of Malaysia Airlines further deteriorate with the the latest development - the share swap deal with Air Asia? Air Asia has become one of the single biggest shareholders in Malaysia Airlines. What is going on? I think many Malaysia Airlines staff are left wondering where is their value of loyalty to the airlines after all these years? 

Malaysian government staff will be paid bonus this "Hari Raya" ! What about the staff of Malaysia Airlines? Nothing! I guess.  

May God help Malaysia Airlines!