KUALA LUMPUR: National carrier Malaysia Airlines Bhd (MAB), which suffered financial losses in recent years, is expected to experience strong revenue growth and start earning a profit by the year 2018, said Prime Minister Datuk Seri Najib Razak.
Najib, who is also Finance Minister, said the various strategies executed under the MAS Recovery Plan (PPM) would help MAB record an improved performance in two years’ time.
“Since starting operations on Sept 1 2015, MAB has registered positive growth in line with PPM’s goals, and will continue giving focus on various initiatives to help the company recover,” Najib said in a parliamentary reply to Datuk Mohd Fasiah Mohd Fakeh (Umno-Sabak Bernam).
Among the initiatives, he said, included MAB’s decision to stop offering flights for non-profitable routes, as well as establishing a strategic partnership with Emirates Airlines through code-sharing.
“This sharing (of codes) will open access to Emirates Airlines’ wide network of routes, which includes 30 countries in North America, South America, and Africa.”
MAB, he said, had also achieved a respectable on-time performance rate of 95 per cent for domestic take-offs and landings.
Announced by Khazanah Nasional on Aug 29, 2014, the restructuring of MAB had shown steady progress for the company to return to sustained profitability.
The PPM focuses 12 primary areas, including business operations models, and administration and finance.
Najib also said MAB would start offering fully lie-flat seats for all Business Class passengers.
On Mar 22, MAB kick-started its cabin refurbishment plans for its Airbus A330-300 aircraft with the launch of the new Business Class seats.
The new seats will feature on its first flight MH141 from Kuala Lumpur to Sydney on March 23. It is also available on MAB's flights between Kuala Lumpur and Australia, New Zealand, Japan, Korea, China and India from this month onwards.