ANNUAL REPORT - ChartNexus

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46 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.
AWARDS AND RECOGNITION Despite the challenges we faced in FY09, we are proud to note that we did not compromise on our high standards of products and service delivery. In the year 2009, we won the ‘5-Star Airline’ award for the fifth consecutive year as well as regained the position as the ‘World’s Best Cabin Staff’, both by Skytrax. We were also recognised as ‘Asia’s Leading Airline’ by the World Travel Awards as well as the ‘Best Airline in Southeast Asia’ by the Global Traveller magazine. In addition, Aviation Week accorded us third place for its ‘2009 Top Performing Companies’ and Jane Transport Finance awarded us with the ‘Aircraft Leasing Deal of the Year (Asia)’. MASkargo meanwhile was recognised as the ‘Best Air Cargo Carrier in Asia’ at the 2009 23rd Annual Asian Freight and Supply Chain Awards while Malaysian Aerospace Engineering (MAE), our Maintenance, Repair and Overhaul (MRO) arm was awarded the ‘2009 Best Asia-Pacific Airline MRO Operation’ by two leading magazines in the industry, Aviation Week and Overhaul & Maintenance. MAE was also recognised as the ‘2009 Best Maintenance, Repair and Overhaul (MRO) Centre in Asia Pacific by Frost & Sullivan. Firefly, our community-airline subsidiary, was recognised as the Best Value Airline of The Year Award (Commercial Air Transportation Category) at the 2010 Frost & Sullivan Asia Pacific Aerospace & Defence Awards. All these awards and more are testament to the fact that we continue to deliver exceptional products and services, not only to our esteemed passengers, but also to our business customers. MOVING FORWARD Brighter Skies Ahead Annual Report 2009 MANAGING DIRECTOR’S STATEMENT 47 2010 prospects are bright for Malaysia Airlines and the industry in general. According to the International Air Transport Association, the industry has seen remarkable recovery in passenger and cargo traffic at the end of FY09 and early FY10. Growth in demand is fairly significant in the emerging markets of Asia, Latin America and the Middle East. In Asia Pacific alone, passenger traffic continued to grow by 6.5% in January and 13.5% in February, year-on-year. Asia Pacific’s travellers numbered 647 million compared to the 638 million who travelled within North America. By 2013, an additional 217 million travellers are expected to take to the skies within Asia Pacific. The 2010 prospects are also bright for MASkargo and the MRO business. With a rebound in cargo demand in Q409 led by the Asia Pacific region, MASkargo is looking at growing capacity by more than 10% in 2010. It is currently developing its partnership with HNA Group in China. MASkargo is also looking into growing its freighter network and upgrading the Advanced Cargo Centre at KLIA. With the first of two new A330-200 freighters expected to be delivered in the third quarter of 2011, MASkargo will be in good position to capitalise on the strong economic growth in Asia Pacific. In January 2010, MAS’ JV MRO company, MAS-GMR Aerospace Engineering Company Ltd, signed a Memorandum of Understanding with Jet Airways. This is to provide exclusive heavy maintenance services to Jet’s fleet over the next 10 years with an option of another 5 years. In addition, MAS has also sealed a 3-year deal to provide maintenance support to SpiceJet, India’s low cost carrier.
Page 1 and 2: 2009 A N N U A L R E P O R T
Page 3 and 4: Contents 2 Journey of Transformatio
Page 5 and 6: New purchase of Avient- crew system
Page 7 and 8: Annual Report 2009 Making reservati
Page 9 and 10: ExPLANATORY NOTES ON SPECIAL BUSINE
Page 11 and 12: Corporate Information COMPANY SECRE
Page 13 and 14: Board of Directors Tan Sri Dr. Mohd
Page 15 and 16: 1 9 6 5 4 10 7 8 2 3 1 Tan Sri Dr.
Page 17 and 18: Tengku Dato’ Azmil Zahruddin bin
Page 19 and 20: Datuk Seri Panglima Mohd Annuar bin
Page 21: Dato’ Haji Abdul Rahman bin Haji
Page 24 and 25: 22 MALAYSIAN AIRLINE SYSTEM BERHAD
Page 56: Madrid 54 Stockholm Bergen Oslo San

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