KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Malaysia Airlines, 2
years after MH370...where are we?
The twin air crashes
that left the brand name in pieces but 2 years on, is Malaysia Airlines in the
right direction?
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| Malaysia Airlines |
The loss of two Boeing
777s just months apart in 2014 triggered the loss-making carrier to seek for
bailout. 1/3 of its staff were cut then while its Boeing 777-200s were grounded
and less profitable long-haul routes were scrapped.
With these efforts in
place and the low level of oil, Malaysia Airlines is confident it will reach
its target to return to profitability in 2018, the year that the German guru,
Christoph Mueller ends his three-year contract.
The big question: Are
things really on track with this new business model?
The narrow, regional
business models might just make Malaysia Airlines suffered against its regional
competitors….especially when it comes to the airline’s long-term strategy.
"Apart from shedding jobs, cutting its fleet size and
renegotiating vendor contracts, it would appear nobody envisions what the
airline might look like in 10 years’ time," said Shukor Yusof, founder
of Malaysia-based consultancy Endau Analytics.
Malaysia
Airlines was struggling with a high cost base and low yields even before 2014,
but its troubles deepened after March that year, when flight MH370 disappeared
en route from Kuala Lumpur to Beijing with 239 people on board. In July 2014,
Flight MH17 was shot down by a surface-to-air missile over Ukraine, killing all
298 on board.
WHAT ABOUT THE LONG-TERM STRATEGY?
In a written statement to Reuters, Malaysian Airlines said its
business plan took "a long term view of the airline’s strategy with a distinct focus
on cost competitiveness in the short term and a clear ambition for expansion
after reaching break even. It is clearly the national carrier’s role to
support the Malaysian economy to enhance connectivity in the rapidly growing
markets in Asia Pacific and beyond."
A
planned rebranding has been put on hold. The company, explain some executives
and analysts, wants to be profitable before it relaunches the brand.
The
restructuring of the fleet and network, and the cost cutting plans are "fundamental and underpinning elements
which have to come ahead of any softer elements such as brand", said
John Strickland, a British-based independent aviation consultant.
For
Johor Bahru-based Yusof, despite the restructuring, there are more questions
than answers about the airline's future.
Says
Yusof: "Sadly its mid- to long-term future, under the current
circumstances, looks almost as bleak as the possibility of finding the missing
MH370."
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