The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
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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