September 14, 2006 19:40 PM
MASkargo Sees RM60 Mln Revenue Reduction From Route Revamp
From Farazira Amira Yusof
CALGARY, Sept 14 (Bernama) - Malaysia Airlines Cargo Sdn Bhd (MASkargo) expects a reduction of RM60 million in potential revenue per annum following the implementation of the first phase of Malaysia Airlines' (MAS) route rationalisation plan in June.
MASkargo's senior general manager, Datuk Ong Jyh Jong, said the plan affected the cargo operations as MAS had cut flights to Manchester, Vienna and Fukuoka although freight demand was high.
The rationalisation exercise is part of MAS' three-year business turnaround plan to either reduce the number of flights or stopped flying to loss-making destinations.
"MAS' route rationalisation plan is something that will hurt us a little bit at this point in time but it is something we have to evaluate," Ong told reporters on the second day of Air Cargo Forum 2006 on Wednesday.
However, he believed the rationalisation plan was generally a "saving" for MAS.
To offset the loss of these international routes, Ong said MASkargo planned to realign some of its flights to ensure the company could provide some capacity that was lost from the cut in passenger flights.
"Currently, more than 60 percent of the company's cargo operations come from international routes.
"Passenger aircraft belly space constitutes close to 55 percent of MASkargo's total cargo uplift and freighters made up the rest," he said.
Ong said the reduction in routes would be supported by new destinations to Milan and Guangzhou which were expected to commence by October and additional passenger flights by MAS to Paris and Rome in October.</u>
He said MASkargo would continue to focus on strong growth markets in West Asia, Europe, South-East Asia, Australia and China.
One said opportunities existed in Philippines, Vietnam and Indonesia but the company was unable to secure landing rights.
"These passenger services are served by narrow-bodied aircraft which do not offer much capacity.
"We may be able to enter the country with the liberalisation of airline industry by 2008," he said.
-- BERNAMA
fonte: http://www.bernama.com/bernama/v3/news_business.php?id=219795