ANNUAL REPORT - ChartNexus
ANNUAL REPORT - ChartNexus
ANNUAL REPORT - ChartNexus
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50<br />
MALAYSIAN AIRLINE SYSTEM BERHAD (10601-W)<br />
Operational Review<br />
Airport and Flight Operations<br />
For the year 2009, Airport Operations (AO) managed to achieve savings of about RM30 million<br />
and also contributed about RM50 million in excess baggage collections. The Flight Operations<br />
(FO) department identified and implemented a total of 27 initiatives under Project Delta, including<br />
11 initiatives on fuel efficiency, and generated savings of about RM65 million.<br />
In the same year, AO also started the ‘Tagless’ bag project under which new rigid tags as well<br />
as new techniques to tag bags were introduced. This initiative reduces the instances in which<br />
bag tags are torn and thus reduces the amount of mishandled bags. In 2009, total mishandled<br />
bags dropped from 3.9 incidents per thousand passengers in 2008 to 3.3 incidents per thousand<br />
passengers, which is better than the industry benchmark of 3.4 cases per thousand passengers.<br />
Project EDGE was also launched in 2009 to improve the service level of customer service agents.<br />
Under the project, training was conducted throughout 2009 to inculcate good habits and service<br />
excellence amongst the front line ground staff.<br />
To enhance flight safety, the FO training arm together with<br />
the Flight Safety department introduced initiatives to review<br />
training footprints for the entire fleet in line with the latest in<br />
the industry.<br />
Ground Handling Management (GHM) undertook a<br />
comprehensive review of all ground handling contracts<br />
expiring in 2009. The reduction in ground handling rates for<br />
new contracts concluded in 2009 was in the region of RM130<br />
million, mainly coming from Australia, India and Hong Kong.<br />
In order to ensure that ground handlers provide the highest<br />
service standards, Service Level Agreements (SLA) with penalties<br />
for service failures, were made mandatory for all new contracts.<br />
In addition, the department also managed to secure the ground<br />
handling contracts for all new airlines operating into Kuala<br />
Lumpur in 2009, namely Air Astana, Air Zimbabwe and United<br />
Airways of Bangladesh. GHM also managed to win over Etihad<br />
Airways who was previously served by another ground handler.
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