KUALA LUMPUR (May 8): Malaysia Airlines Bhd (MAB) recently pulled off an impressive RM15 billion debt restructuring exercise which saw it eliminate RM10 billion of debt from its balance sheet in 4½ months. It comes at a time when many other airlines are still in talks with their lessors and creditors about a restructuring plan.
The national flag carrier was also given a new lease of life by its controlling shareholder Khazanah Nasional Bhd, which provided interim funding of RM1.1 billion earlier this year and pledged a further RM3.6 billion capital injection into the company over the next five years.
But rescuing the airline has come as no surprise given numerous transformation efforts undertaken in the past two decades, where the goal for sustainable profits remains elusive.
Published on: Wednesday, May 05, 2021
By: Bernama
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Kuala Lumpur: The Malaysia Aviation Group (MAG) expects to break-even financially and be cash positive by 2023 through its newly-launched Long Term Business Plan (LTBP) 2.0.
Group chief executive officer Captain Izham Ismail said the target would be achieved amidst a subdued market, with recovery expected to take place only in 2022/2023.
“I’m hopeful if the market turns around, we will break even much earlier, but the trajectory that we are looking at is an extended ‘L-shape’ recovery that is very likely (to happen) in 2023,” he said during the virtual media briefing on MAG’s LTBP 2.0 Tuesday.
KUALA LUMPUR (May 4): Malaysia Airlines Bhd s parent Malaysia Aviation Group (MAG) aims to break even by 2023 through its Long Term Business Plan 2.0 as the group contends with the Covid-19 pandemic’s impact on the global aviation sector, MAG group chief executive officer Captain Izham Ismail said today.
Izham said the domestic travel market needs reform to be sustainable as conditions are expected to worsen post-Covid-19 pandemic.
“Airlines average fares have not been tracking inflation year-on-year and this has created an unsustainable situation for the domestic market.
“The seats are [in] oversupply [situation], resulting [in] price wars which have created a race to the bottom for all players,” he said during a virtual press conference on MAG s business update.
MAG group CEO Capt Izham Ismail said if the market turns around faster, they would break even much earlier.
KUALA LUMPUR: Malaysia Aviation Group (MAG) is banking on its Long Term Business Plan 2.0 to break even its finances and turn cash flow positive by 2023 in what it calls a “downside scenario”.
Group chief executive officer Capt Izham Ismail said if the market turns around faster, they would break even much earlier.
“The trajectory that we are looking at is an extended L-shaped recovery so very likely, it’s (the recovery) in 2023.
“I hope it doesn’t go south from there.
Malaysia Airlines will be retiring its Airbus A380 fleet in the coming months, according to a report by Reuters. In a statement by Malaysia Aviation Group (MAG) CEO Captain Izham Ismail, the group’s management is convinced that the aircraft “doesn’t fit” with its newly announced Long Term Business Plan 2.0 (LTBP 2.0) – a five-year plan (2021 – 2025) that is set to transform MAG into Asia’s leading travel and aviation services company.
“We are cognizant of the challenges to sell this aeroplane, but we are still looking at ways and means to dispose of our 380 fleet,” he commented. Aside from opting to sell all six of MAG’s A380 double decker jumbo jets, Izham initially assigned them to the group’s subsidiary brand Amal. For those unfamiliar, Amal offers scheduled and charter services to Jeddah and Madinah from Kuala Lumpur for both Hajj and Umrah pilgrimages.