Malaysia Airlines boosted after sweeping reforms
KUALA LUMPUR (AFP) -– Not long ago, Malaysia Airlines was on life support, forced to sell off its headquarters and firing thousands of staff to avoid bankruptcy, but analysts are now bullish about its prospects.
The Malaysian flag carrier sank to its lowest ebb in 2005 when it racked up losses of 1.3 billion ringgit (386 million dollars) over nine months.
The dismal performance forced the introduction of sweeping reforms which saw the airline slash staff and unprofitable routes and sell non-core assets. Malaysia Airlines finally swung into the black in 2007.
Despite the global financial crisis that then hit, grounding many weak airlines, analysts are upbeat on the Malaysian carrier's fortunes, especially after it posted net profits of 490 million ringgit last year.
“We are optimistic,” Hafriz Hezry Harihodin, an aviation analyst from AmResearch, told AFP, saying an extensive fleet renewal was expected to have a positive impact on yields from 2011.
The turnaround plan has been a success, “especially in terms of bringing down unit costs, improving efficiency and strengthening balance sheets,” he said.
The dismal performance forced the introduction of sweeping reforms which saw the airline slash staff and unprofitable routes and sell non-core assets. Malaysia Airlines finally swung into the black in 2007.
Despite the global financial crisis that then hit, grounding many weak airlines, analysts are upbeat on the Malaysian carrier's fortunes, especially after it posted net profits of 490 million ringgit last year.
“We are optimistic,” Hafriz Hezry Harihodin, an aviation analyst from AmResearch, told AFP, saying an extensive fleet renewal was expected to have a positive impact on yields from 2011.
The turnaround plan has been a success, “especially in terms of bringing down unit costs, improving efficiency and strengthening balance sheets,” he said.
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