MAS ends Los Angeles flights to cut costs
Kuala Lumpur-based Malaysia Airlines (MAS) will suspend its flights to Los Angeles – its last destination in the Americas – from 20 April 2014 as part of a major cost-cutting drive.
March 6, 2014
Kuala Lumpur-based Malaysia Airlines (MAS) will suspend its flights to Los Angeles – its last destination in the Americas – from 20 April 2014 as part of a major cost-cutting drive. The government-owned carrier, which is expected to post a significant full-year loss for 2013, said it would undertake another “route rationalisation exercise” this year, in an effort to stem the losses. For the first nine months of last year, MAS registered a net loss of MYR830 million (US$249 million).
“Whilst Malaysia Airlines has a long history in Los Angeles, this route is no longer economically viable,” said MAS group CEO, Ahmad Jauhari Yahya. “The factors contributing to this negative situation today include over-capacity and competition resulting in lower yields, high cost of operating the B777 aircraft and pressure from continued increases in fuel costs. These are adding further pressure to the expenses of Malaysia Airlines group, which we are continuously evaluating,” he added.
MAS’ latest route rationalisation plan comes two years after the airline slashed its long-haul services to Rome, Johannesburg, Cape Town and Buenos Aires, as part of its first major cost-cutting drive. Despite losing its only route to North America, MAS said it would leverage its recent membership of the oneworld alliance to continue serving the continent.