Flag carrier Malaysian Airlines said it expects to save RM150 million a year after it switches to a new aviation management system by Lockheed Martin.

"The potential fuel and operational cost savings to be derived with the introduction of the new system is in the region of 150 million ringgit per annum after the project is fully launched by the middle of 2006," said Nawawi Awang, Malaysia Airlines' senior general manager of flight operations.

He was speaking to reporters following the signing of the agreement with Lockheed Martin here.

Ambitious plan

The contract, which has a start-up cost of RM11 million, calls for an integrated technology suite to be installed at the flight operations dispatch centre, located at the Kuala Lumpur International Airport, by June 2006, the carrier said in a statement.

The airline recently announced one of its worst ever quarterly losses at RM280.66 million in the three months to June after a profit of RM26.58 million a year earlier.

After the results, Malaysia Airlines announced an ambitious five-year plan to boost profits by up to RM1 billion, including shaking up its management.