MAS sticks to home ground

MALAYSIAN Airline System (MAS) is pulling back from European traffic routes and localising in the Asia-Pacific region, as it looks to trim costs.

The airline, which is considering a cargo cull, will also cut its Middle East destinations this year, including Dubai (UAE), Pakistan and Saudi Arabia.

The company looks to reduce the impact of its expected US$53 million loss this year with a focus on key ASEAN routes, south and north Asia, as well as China.

The route rationalisation will have minimal impact on cargo, the carrier says, and will boost loads, yields and have a profit impact of $69-95 million.

Industry executives say that even though MASkargo may have reported profits in recent years it is hard to determine whether a cargo outfit linked to a passenger airline is truly profitable. This is because so many of the cargo operation’s costs can be transferred to the passenger business.

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