28 August 2009

I Don't Know if Malaysia Airlines Will Make It

This is a follow-up to my previous post. The more I look, the more depressing the figures become. The table below shows the operating revenue and operating expense of Malaysia Airlines from 2005 to Quarter 2 2009.


2005

Operating Revenue

Operating Expenses

Difference

Q1

2,964,009

(3,059,158)

(95,149)

Q2

2,804,539

(3,164,404)

(359,865)

Q3

3,014,203

(3,440,004)

(425,801)

Q4

3,129,329

(3,816,994)

(687,665)





2006




Q1

2,970,959

(3,342,542)

(371,583)

Q2

2,945,833

(3,205,802)

(259,969)

Q3

3,501,792

(3,558,346)

(56,554)

Q4

3,708,178

(3,685,703)

22,475





2007




Q1

3,470,547

(3,398,677)

71,870

Q2

3,385,232

(3,390,954)

(5,722)

Q3

3,758,443

(3,738,326)

20,117

Q4

4,056,783

(3,858,422)

198,361





2008




Q1

3,663,681

(3,620,020)

43,661

Q2

3,652,349

(3,715,008)

(62,659)

Q3

3,954,080

(4,070,285)

(116,205)

Q4

3,764,132

(3,800,197)

(36,065)





2009




Q1

2,495,444

(2,985,918)

(490,474)

Q2

2,701,031

(2,877,507)

(176,476)


It seems that out of 18 quarters, operating revenue exceeded operating expense only 5 times. How do your sustain your core activity if no profits are derived from your core business activities? I think the airline should look into more efforts in reducing its costs.


I read somewhere once that Tony Fernandes the CEO of Airasia once said that costs is Airasia’s enemy and not other airlines or other modes of transportation. Perhaps, Malaysia Airlines should take heed of this statement.

(202 words)

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