WAU! AJ briefed PAC: Firefly loss RM89 mil & CCF

AJ briefed PAC on 21-11-2011 about “HIS” New Business Plans to save MAS.

Why MAS losing?

37 out of 107 do not cover variable costs

Notes:

Unfortunately, AJ only informed PAC of the KL-Cape Town – Beuenos Aires, KL Johannesburg, KL – Dubai – Dammam, KK – Seoul, KK – Perth, KK – Tokyo and KK – Osaka are the 8 routes that do not cover variable costs. How about the remaining 29 routes?

KK – Perth, KK – Tokyo, KK – Osaka, KK – Seoul and KL – Dubai are new routes that need a bit of time and costs to promote and nurture. These routes have potential especially the KK sectors to Perth, Tokyo, Osaka and Seoul. It must be coincidental that AirAsia X Sdn Bhd is also flying to these cities.

By the way, Emirates Airline has two daily flights to Dubai – KL – Dubai. If Emirates Airline can operate two daily flights, it must be profitable. If MAS operating the same route with RM18.1 million losses from January to September 2011, then AJ is duty bound to look into the reasons. Was it because MAS was not able to compete in term of fare, poor services, poor quality of in-flight food, poor marketing strategy and/or incompetent sale person with accounting background stationed in Dubai? If Emirates Airline can do it comfortably with two