MAS's operational progress in line with recovery plan

-A Monitor Report 1 Feb, 2019 | 31 Views | - +
Kuala Lumpur : Although relatively little is being said and publicised about Malaysia Airlines Bhd's (MAB) recovery plan, a substantial amount of progress has actually been achieved in its business operations in line with the plan which aims to revive the country's national carrier and sustain its profitability.

Captain Izham Ismail, Group Chief Executive Officer said improvements in terms of cost base, productivity, information technology (IT) systems and customer experience were among the achievements chalked up by the company, thanks to the five-year Malaysia Airlines Recovery Plan (MRP).

In an interview with Bernama, he said plans had been put in place to address the airline's performance going forward and this had yielded improved performance for the first half of this year.

The airline performed stronger in the first six months of this year than in the same period of 2017, adding that the key focus for the airline in financial year 2018 included driving revenue.

"This will be underpinned by continuous improvement in customer experience, product quality and operational excellence whilst maintaining a productive and competitive cost base," he said.

According to Izham, MAB's cost base has been significantly changed to bring it in line with its peer network airlines.

As of today, the group has one of the lowest cost bases among its peer network airlines on a cost per available seat kilometre basis.

The company has also seen material gains in productivity with a more competitively sized workforce, which is further complimented by a commitment towards continuous talent development.

"Stronger local talent pool has now been established," he added.

On the group's IT system, which is an integral part of overall airline operations, Izham said a complete overhaul had now been completed.

He said the new Passenger Service System and migration to cloud-based data centre had improved reliability and cyber security as well as enhance agility and better time-to-market.

Izham further stated that customer experience had also improved with market-driven metrics based on the company's customer survey and net promoter measures showing significant positive gains over the last two financial years.

On the operational front, Izham mentioned the supply chain in engineering had been significantly tightened, which had helped the airline's on-time performance, although it was still impacted by external factors beyond its control.

"Since the set-up of NewCo (MAB, which took over the operations, assets and liabilities of Malaysian Airline System Bhd or MAS) in 2015, we are showing progress and have recorded a double-digit compound annual growth rate growth (of 21 per cent) over the last three years," the Group Chief Executive Officer claimed.

"That is improvement straight to the bottom line," the Group CEO explained.

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