MH370 not the main factor in MAS turnaround

comments     TigerTalk     Published     Updated

KINIBIZ Tiger sympathises with Malaysia Airlines (MAS) and the disappearance of MH370 which puts added pressure on the airline as forward bookings plummet. That will go away but the airline will still be faced with the same persistent problem: Plummeting yield, the amount that it gets for flying a passenger one km. MAS has to sort that out if it really wants to firmly turn around.

Unarguably it is a tough time for airlines and unfortunately it is far tougher for Malaysia Airlines or MAS which had to put up with the loss on March 8 of an aircraft and all the passengers on it.

This has already impacted MAS’ first quarter earnings for this year with a deeper loss of RM442 million compared with RM279 million a year ago, although it is difficult to say how much the disappearance of MH370 affected the airline as it happened only in the last month of the first quarter.

Things are likely to get worse before they get better as the full impact of the loss of forward bookings and cancellations along with any other costs associated with MH370 will be increasingly felt in the coming months of the year.

For the complete article go to KiniBiz .

This article was written by P Gunasegaram.



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