Malaysia Airlines posts net loss of $74.4 million in first quarter

Malaysia Airlines posts net loss of $74.4 million in first quarter    Kuala Lumpur-based Malaysia Airlines reported a net deficit of 280.7 million ringgit ($74.4 million) for the first quarter of its shortened nine-month financial year ending Dec. 31.
   The airline’s revenue increased 17 percent to 2.8 billion ringgit ($743 million). Fuel costs rose 58 percent to 1.2 billion ringgit ($318.3 million) from 706 million ringgit in the year earlier quarter.
   The airline said it acknowledged the net loss was not merely a result of the record high fuel prices. “This is a reality check. The company has not been making operating profits, even since the WAU (Widespread Asset Unbundling). The (previous) profits that have been reported are an accounting profit, attributable to gains from one-off benefits, not from sustainable operational performance,” said Dato’ Mohamed Munir Abdul Majid, Malaysia Airlines’ chairman.
   “We recognize the issues that currently exist within Malaysia Airlines and we have a planned and systematic approach to address them,” Dato’ Munir said.
   The airline has decided to restructure its management by establishing an executive committee headed by the chairman and comprising the positions of managing director, executive director and representatives from the three lines of business — commercial, operations and business services.
   Tengku Azmil Zahruddin bin Raja Abdul Aziz has been appointed the new executive director, responsible for strategic matters at the corporate level, and driving the change program across the organization, the airline said.
   “This new structure is designed to focus on streamlining the operations of Malaysia Airlines and enhance the cost and operational efficiencies of the organization,” said Dato’ Munir.
   At the same time, Dato’ Ahmad Fuaad Dahalan has resigned as managing director of Malaysia Airlines with immediate effect. Dato’ Munir will assume the role of managing director until a permanent replacement is appointed.