Malaysia Airlines (MAS) said today it posted a smaller net loss of RM79.679 million in the first half compared with last year's RM557.60 million loss.

Malaysia Airlines attributed the improvement to cost control measures, lower finance charges and a lower average fuel price.

The national carrier said it turned around in the second quarter to September with a net profit of RM1.117 million against a RM236.911 million loss a year ago, as the various turnaround programs initiated in the second half of 2001 began to take effect.

However Malaysia Airlines had forecast a net profit of RM94.2 million for the year to March.

The airline, struggling under some RM10 billion in debt, embarked on a revamp aimed at returning it to the black by 2004 after the government renationalised it in February.

Selling non-core assets

Shareholders had approved a restructuring plan under which the airline would transfer 73 aircraft to a government vehicle Penerbangan Malaysia Bhd (PMB), and lease back the aircraft.

The reorganisation will also involve the financial transfer of the domestic airline to PMB but Malaysia Airlines will continue to operate the domestic service for the government body.

The company has also proposed selling its non-core assets and businesses, which include a 70 percent stake in MAS Catering Sendirian Berhad and property. AFP