ANNUAL REPORT - ChartNexus

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MALAYSIAN AIRLINE SYSTEM BERHAD (10601-W)
As we were cognisant of the pressures on revenues, we doubled
our efforts in containing costs. Oil prices declined significantly
from a high of USD182 per barrel in 2008 to an average of
USD70 per barrel in 2009. The lower average price, coupled
with lower consumption of fuel, resulted in a 46% decrease
in our fuel expenditure. Overall, we managed to reduce our
operating expenditure by 20% for FY09.
As a result of the global downturn and subsequent collapse in
air travel, we recorded an operating loss of RM628 million. The
year 2009 posed numerous challenges to airlines worldwide,
and many did not survive. A number of airlines posted bigger
losses and some even filed for bankruptcy. Malaysia Airlines,
however, remained resilient and emerged poised for future
growth. We were aggresive in terms of generating revenue
and cutting costs. Indeed, in the fourth quarter of the year,
we recorded a modest RM3.8 million operating profit, which is
testament to the efforts we put in place throughout the year.
Our cargo operations also saw lower revenues and yields, both
down 33% and 20% from FY08 respectively as a result of
notably lower demands. However, demand significantly picked
up in the second half of the year, and MASkargo has been agile
in capitalising on the economic recovery in emerging markets
led by China. As a result, cargo load factor rebounded from
67.5% in FY08 to 70.3% in FY09.
In terms of the balance sheet, we had RM2.95 billion in cash
and negotiable deposits at the end of FY09. Prudent capital
management and cash conservation practices ensured that the
balance sheet remained strong and healthy.
SAFETY REMAINS PARAMOUNT
Safety remains an integral part of our 5-Star MH delivery to our
customers and we continue to ensure that the “No Compromise
to Safety” approach is fully understood and strongly supported
by people, policies and processes across the Company. Our
Board-endorsed Safety Management System (SMS) seeks to
safeguard the safety and security of our operations in all areas
throughout the company.
In the year under review, we emphasised a number of safety
activities to address key safety risks. The “Raise the Safety Bar”
(RSB) initiative was implemented under the Safety Security
Health and Environment for 2009 Programme to address these
risks. In addition, safety development plans were implemented
to continuously enhance our proactive safety capabilities. Flight
data analysis, risk assessments and line operations change
programmes were reviewed for timely and insightful feedback
from relevant units. The monitoring of safety management
processes in flight operations, engineering, security, cargo and
ground operations were done continuously to ensure that these
are in line with the company’s quality standards.