KUALA LUMPUR, Dec 14 — Ailing flag carrier Malaysia Airlines System (MAS) will cut eight loss-making routes from January next year in a bid to stem losses anticipated this year and in 2012.
The affected routes are:
• Kuala Lumpur - Surabaya (B737) from January 6, 2012
• Kuala Lumpur - Dubai (A330) from January 10, 2012
• Kuala Lumpur - Karachi - Dubai (A330) from January 12, 2012
• Kuala Lumpur - Dubai - Damman (A330) from January 13, 2012
• Langkawi - Penang - Singapore (B737) from January 30, 2012
• Kuala Lumpur - Johannesburg (B777) from January 31, 2012
• Kuala Lumpur - Cape Town - Buenos Aires (B747) from February 1, 2012
• Kuala Lumpur - Rome (B777) from February 2, 2012
“Malaysia Airlines regrets for the inconvenience to passengers as a result of these changes and assures that it will honour all forward bookings ticketed to date on the affected routes.
“The company will make alternative carrier arrangements, at its own cost, to ensure minimum discomfort to passengers,” MAS said in a statement today.
Its chief executive, Ahmad Jauhari Yahya, said the eight routes account for some 12 per cent of passenger capacity and that their cessation will improve loads, increase yields and boost profit by RM220-302 million next year.
He added that the route rationalisation will have minimal impact on Malaysia’s position as a top tourist destination in Asia as the airline will work aggressively with its code share partners to ensure continued connectivity.
Last week, MAS revealed its turnaround strategy which aims for an RM1.2-1.5 billion swing in performance from cost saving and productivity measures, as well as a return to profit by 2013.
Analysts, however, were sceptical of the airline’s latest round of restructuring, noting that MAS had yet to address operational and structural issues.
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