Paul Lewis/KUALA LUMPUR
MALAYSIA AIRLINES (MAS) is now prepared to face local competition after nearly two years of company restructuring, according to chairman and major shareholder Tajudin Ramli.
His comments came in response to indications that Heavy Industries of Malaysia (HICOM) is reviving plans to launch AirAsia, 15 months after the proposed start-up carrier was spiked by the Government (Flight International, 17-23 April).
"We're now ready to face these new challenges," claims Tajudin. "My only concern is for this country, as we already have 32-33 operating licences issued. This is an industry overexposed to competition, an industry in which you can make money, but also make a lot of losses."
While the number of smaller domestic operators has grown in recent years, with the entry of new carriers such as Saeaga Airlines, MAS maintains a monopoly on scheduled international flights. Plans to open up regional routes to AirAsia were scrapped in 1994, under pressure from the then-new MAS chairman.
Tajudin explains: "When I first came in, I wrote to the Government and asked that I be given a two year rest period to help restructure the company, and I suppose that two-years' grace will be up in August."
In the intervening period, MAS has been financially turned around and undergone a major restructuring programme, which will result in around half of the carrier's 19,600 workforce, being hived off into subsidiary operations.
The airline's former engineering division is the latest unit to be incorporated, with the creation of MAS Aero-Technologies on 1 April. The subsidiary has been given a three-month "testing period" before it is financially separated from MAS in June, says Tajudin.
Another subsidiary operation, Malaysia Airlines Academy (MAA), was given a significant boost with the opening of a new RM$300 million ($119 million) training site on 25 April. MAA provides management, technical and flight training for MAS and up to 30 other airlines.
The academy plans to develop engineering courses to support Malaysia's expansion into aerospace manufacturing.
In addition to its other existing subsidiaries, MASKARGO, MAS Catering, Golden Boutique and Golden Holidays, MAS plans to spin off its aircraft-charter and contracts department into a separate business. Other possible areas being considered in the longer term include airport services and information technology.
Source: Flight International
