More turbulence ahead for M’sia Airlines

Pessimistic outlook for the airline continues amidst competition from low cost budget carriers.

Malaysia Airlines

According to reports, MAS, which lost money in most quarters for the past two years, posted a RM1.17 billion (S$447 million) loss last year. Worse, market watchers say its future looks turbulent with no clear skies in sight. While the impact of low-cost carriers such as AirAsia and newcomer Malindo Air and high fuel costs are felt across the industry, analysts say MAS has other problems – a bloated staff and low productivity.

“MAS cannot keep doing the same thing over and over again, and still hope for some magic to come through,” analyst Mohshin Aziz told news sources.

He thinks MAS needs a more radical strategy, such as hiving off its divisions like its engineering and cargo units into standalone companies and pushing sales of its premium seats.