Carrier working closely with Khazanah to lift financial position

KUALA LUMPUR: Malaysia Airlines Bhd is working closely with its sole shareholder, Khazanah Nasional Bhd, to strengthen the national carrier’s financial position and operations.

Malaysia Airlines group chief executive officer Captain Izham Ismail said its strategy had always been to become a premium, profitable Asia-Pacific airline delivering Malaysian hospitality.

He said the carrier’s management team had met with newlyappointed Khazanah managing director Datuk Shahril Ridza Ridzuan.

Izham said Shahril understood Malaysia Airlines’ situation, which was impacted by intense competition in the marketplace and volatility in foreign exchange (forex) and jet fuel prices.

“For the airline to be successful, it is very important to deploy its network (where it should fly) to generate income. We have to fill up seats with high yields. Previously, our predecessors had withdrawn certain routes because we couldn’t fill the aircraft and make money on the routes.”

Izham said Malaysia Airlines would focus on strengthening its network in Asia Pacific, including Australia, China and Japan, in order to stabilise itself.

Strategic markets like London, meanwhile, would also be retained.

“The post-Malaysia Airlines Recovery Plan has shrunk our network. It is important for us to leverage our partners in oneworld alliance and code-sharing programmes to compete in the market.”

He said Malaysia Airlines had a hedging policy of up to 24 months and leveraged technology to buffer fuel and forex volatilities.

The airline recently introduced SkyBreathe, an innovative fuelsaving solution by OpenAirlines, to help analyse its flight data and assess flight efficiency.

This allows the airline to implement best practices for fuel savings.

“While we try to manage external factors that are beyond our control, our key focus remains driving revenue improvement through improved products and services.”

Izham said the airline was still open to possibilities that could add value to the company.

“To be frank, my objective is not listing the airline but, rather, to make it listable (ready for listing). For now, foreign strategic tie-ups and stake sale are not on my radar,” he added.