Latest:

MAS still interested in joining alliance: CEO
Nicholas Ionides, Vancouver (04Jun07, 01:06 GMT, 305 words)


Malaysia Airlines (MAS) is still interested in joining a multilateral alliance but has made it less of a priority as it has focused on implementing restructuring initiatives over the past 18 months.

Managing director and CEO Idris Jala said at a briefing on the sidelines of the IATA annual general meeting in Vancouver: “That has always been on the cards. If the opportunity does arrive we will look at this.”

However he says that “we are not in active talks with alliances” and the airline has been successful in building up its network reach through bilateral codeshare agreements, such as with South African Airways of the Star Alliance and Alitalia of SkyTeam. Both those agreements were signed this year.

Jala also says that “a few more [are] in the pipeline” at a bilateral level, and talks are taking place with one airline in China and one in India which he will not identify. China Southern Airlines is seen as the most likely candidate in China.

“To my mind we get a lot of the benefits of the alliance in what we are doing” at a bilateral level, although he says that missing are the full benefits of loyalty programme ties with all members of a multilateral grouping.

MAS, which has long been seen as a potential future member of SkyTeam, has been implementing a wide-ranging restructuring programme since soon after Jala took over as head of the carrier at the end of 2005. He says that successfully implementing all aspects of its so-called Business Turnaround Plan remains the priority.

Restructuring initiatives have comprised a fleet and network downsizing as well as manpower reductions, among other things, and they have been producing results more quickly than expected.

Late last month full-year profit forecasts were significantly increased after much better-than-expected earnings were recorded in the first quarter.


Source: Air Transport Intelligence news