MALAYSIA AIRLINES CUTS ROUTES IN BID TO GET BACK TO PROFIT

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Thursday, 27 July 2006

Troubled Malaysia Airlines will cease operating to seven international routes by June in a bid to reduce losses and return to profitability. The carrier will no longer fly from Kuala Lumpur to Manchester and Vienna, Ahmedabad and Kolkata in India, Xian in China and Padang in Indonesia.

In Australia the first phase of its route rationalization program effective 26 March will see the following flights - Twice weekly Sydney – Kuching – Kuala Lumpur B777 one way flights; Twice weekly Kuala Lumpur – Kuching – Perth A330 return flights; Twice weekly London – Langkawi – Kuala Lumpur B747 one way flights and Twice weekly London – Penang – Kuala Lumpur B747 one way flights realigned to operate direct between KL international Airport (KLIA) and the cities of London, Sydney and Perth.

In addition, the current thrice weekly Kuching-Kuala Lumpur-Frankfurt B777 return flights will be operated Kuala Lumpur-Frankfurt return effective the same date. The airline will also give up many of its domestic routes to rival low-cost carrier AirAsia. Last month, Malaysia Airlines reported a loss of 1.26 billion ringgit (AUD$468 million) in the 2005 financial year, blaming it mostly on higher fuel costs. The airline had made a profit of 216.9 million ringgit (AUD81.1 million) a year earlier.