Malaysia Airlines cuts more routes to stem losses
Flag carrier Malaysia Airlines on Friday said it would cut four more routes in Asia, a week after announcing a suspension to some global destinations as it tries to return to profit.
The airline, which has struggled to stay in the black in recent years, unveiled a business plan last week aimed at becoming profitable by 2013 that would include a route “rationalisation” but did not name the affected routes.
It said it would put a halt to trips from Kota Kinabalu to Osaka and Haneda in Japan, to Perth and to Seoul. The carrier added that the suspensions would come into effect between January and February.
“This suspension is until further notice and is part of our regional network consolidation involving single-aisle aircraft operations,” Ahmad Jauhari Yahya, the airlines’ chief executive officer, said in a statement.
The airline last week said routes servicing Rome, Johannesburg, Cape Town, Buenos Aires, Karachi, Dubai, the Saudi Arabian city of Dammam, and the city of Surabaya in Indonesia, will be dropped from January.
It plans to instead bolster services to major destinations in Asia that have better prospects.
In the third quarter of this year, the airline posted its third straight quarterly loss, owing to high fuel costs and increased competition.
Source: MSN News, “Malaysia Airlines cuts more routes to stem losses”, http://news.malaysia.msn.com/regional/article.aspx?cp-documentid=5686334
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Malaysia Airlines has announced it will close loss-making routes on some of its poor performing flights .The airline is struggling to stem losses and repair its image. Some of the long-distance routes that have been unprofitable was cut due to high fuel costs and increased competition from other airlines.
A few countries like Zurich ,Rome, Johannesburg, Cape Town and Buenos Aires to name a few was cut to save costs then.
Thank you Rinpoche for sharing.Till today they are still trying hard after the two incident of MH 370 and MH 17.Anyway wish them all the best….MAS