ANNUAL REPORT - ChartNexus

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MALAYSIAN AIRLINE SYSTEM BERHAD (10601-W)
The MoU with PW will see both parties exploring possibilities of
setting up a JV company for nacelle and composite repair and
overhaul. The MoU with KRAUSS is aimed at providing parts
repair for engines, landing gears, and airframe.
In terms of cost savings, MAS Engineering achieved RM103
million of savings through the E2B Cost Management and
Integrated Supply Chain portfolio without compromising on
safety and quality. A total of 42 Key Performance Indicators
(KPIs) were used to measure and monitor safety performance
and various safety action plans were identified and appropriate
process put in place for different reporting levels to the
management and the board through out the year.
MASkargo
Malaysia Airlines Cargo Sdn Bhd, MASkargo’s core business is the
selling of space on both Malaysia Airlines passenger flights and
MASkargo freighters as well as cargo ground handling in three
major airports in Malaysia. MASkargo handles general cargo,
express cargo, perishables, live animals, transshipment of cargo
on behalf of Malaysia Airlines as well as other customer airlines.
Through MASkargo Logistics (MLSB), MASkargo also offers
Truck Flight services of trucking palletized cargo from various
points for connection on board MASkargo flights at KLIA.
MLSB also provides full Customs bonded trucking facilities and
security escort services throughout Malaysian hubs. Equipped
with leading cargo handling systems, MASkargo’s base is the
Advanced Cargo Centre (ACC) - a 108-acre complex covering
92,900sq m of processing area and is able to handle up to 700
tonnes of cargo annually. It also features a sophisticated security
system and the latest technology to streamline procedures and
communication.
In the year under review, MASkargo has initiated several
revenue enhancement programs which include a cargo
volumetric project to eliminate revenue leakage and back-end
container project for last minute upliftment of containerized
cargo. In addition to this, cost control measures through plastic
recycling project have proved to enhance MASkargo’s bottom
line. As a ground handling agent, MASkargo further improved
its efficiency by improving the mishandling rates to 0.048%,
down from the previous year’s of 0.056%.
To date, MASkargo has achieved the ISO 9001, ISO 14001 and
OHSAS 18001 certifications. The company’s success in acquiring
the prestigious certifications is a formal recognition that the
quality management, environment management as well as the
occupational health and safety management systems in place
are of international standards.
2009 was an incredibly tough trading environment for the
global airfreight industry and MASkargo was not immune to
this. The first half of the year proved to be challenging as airlines
aggressively adjusted capacity to address lower demand. In fact,
it was not uncommon to see freighters being grounded globally.
In line with the industry trends, the total cargo revenue dropped
by 29.4% from FY08 mainly due to a reduction in combined
yield and tonnage. Total cargo throughput at KLIA decreased
to 536,636 tonnes from 623,314 tonnes in the previous year.
However, this reduction of only 13.9 percent is in line with
other cargo operators operating in this region. Nevertheless,
the air freight market has made a remarkable recovery in the
fourth quarter of the year. This recovery was primarily driven in
the Asia Pacific region, and MASkargo managed to capitalise
on the sudden increase in demand from this region. Due to
the remarkable improvement in demand during the last quarter
of FY09, MASkargo managed to end the financial year on a
stronger footing.
MASkargo was recognised as the Best Cargo Airline in Asia at
the Asian Freight & Supply Chain Awards in 2008 and has since
managed to remain as one of the top three air cargo carriers
in Asia, proving its mettle as a strong cargo player in region,
capable of handling the most complex and delicate of cargo.