Saturday, March 3, 2012

MAS BIGGEST LOSS EVER

Malaysian Airline System Bhd (MAS) recorded a net loss of RM2.52 billion, on the back of RM13.9 billion in revenue, for the financial year ended Dec 31, 2011. For the fourth quarter, the national carrier recorded RM1.28 billion in net loss, on a turnover of RM3.68 billion, said group chief executive officer Ahmad Jauhari Yahya.

He said the bottom-line group losses for 2011 underscored the imperative need for the airline to immediately adopt strong measures to stop the "bleeding".

"These includes staff redeployment, increasing productivity and efficiency, relentless cost control and making further reviews. We are also implementing an aggressive sales and marketing strategy," he told a press conference here today.

Ahmad Jauhari said the group's full year performance was severely impacted by a 21 per cent increase in expenditure of RM16.2 billion, from RM13.41 billion in 2010, previously. He said the higher expenditure was due to a 33 per cent increase in fuel cost of RM5.85 billion and a 15 per cent increase in non-fuel expense of RM10.43 billion.

The rise in non-fuel expense was mainly due to provisions totalling RM1.09 billion made in the fourth quarter for stock obsolescence, redelivery of aircraft and impairment of freighter aircraft.

Whatever accounting reasons you can think of does not discount the fact that for years now MAS has been plagued by abuses by the government itself and the working culture of its employees, who neither could shaped up or be shaped out.

Long live MAS.

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