ID :
407861
Thu, 05/26/2016 - 13:32
Auther :

Malaysia Airlines Making Good Progress On Turnaround Plan

KUALA LUMPUR, May 26 (Bernama) -- Malaysia Airlines Bhd (MAB) said it has started the year positively, with the company making good progress on its turnaround plan. "MAB has delivered ahead of its financial budget for the first three months of 2016. "On-time performance is stable and steadily improving and the airline’s customer service index is recovering with more significant enhancements in the pipeline," it said in a statement Thursday. However, it said, the second quarter is expected to be weaker due to the soft demand during Ramadan. "Overall, the airline and the Group are expected to record a loss for the whole fiscal year of 2016, but significantly smaller than initiallly budgeted at the beginning of the year, and ahead of the turnaround plan for the airline to be sustainably profitable by 2018," it said. Group Chief Executive Officer Christoph Mueller expressed his delight at the continued improvements shown by Malaysia Airlines in this first year of the biggest and fastest transformation in its history. "By moving swiftly and making tough decisions early, we have reshaped the business for a strong, sustainable future. Our financial progress achieved this quarter shows that we are firmly on the right trajectory," he said in the statement. He said the management team and the Board of Directors have now commenced discussions on the next growth phase in order to further connect Malaysia to the world. "Even though personal circumstances mean I will not complete my full term as chief executive, I am confident that the foundations are now in place for the national carrier to achieve sustainable profitability in the stated timeframe and regain its rightful place as a symbol of national pride," added Mueller. MAB said the quarter also saw the resignation of Mueller, who will serve a six-month notice period until September in order to facilitate an orderly transition. "He has expressed a desire to continue to remain on the Board of Directors as a Non-Executive Director if circumstances permit. "In order to facilitate a smooth transition, the Board has appointed Peter Bellew, the current Chief Operating Officer, as Executive Director of the Board with immediate effect," it said. -- BERNAMA

X