Sepang: Malaysia Airlines today announced its 5-year Business Transformation Plan (BTP 2) with bold profit targets of up to RM2-3 billion per annum by 2012.
February 1, 2008,
Building upon its successful Business Turnaround Plan (BTP 1) which saw the national carrier completing its turnaround a year earlier than scheduled, Malaysia Airlines aspires to achieve the profit targets by transforming into the World’s Five Star Value Carrier (FSVC), offering 5-Star products and services at affordable prices.
Managing Director/ Chief Executive Officer, Dato’ Sri Idris Jala said, “Based on a series of focused key business activities, we aspire to achieve RM400-RM500 million (on target), RM551-RM650 million (exceeding) and RM651-1000+ million (outstanding) in 2008.
“We believe that if we aim for the best and stretch our limits, we will achieve an annual profit of RM1.5 billion by 2012 even after factoring the industry’s challenges. Should the magnitude of overcapacity and liberalisation be less than what we anticipate, we can achieve between RM2 – RM3 billon per annum.
“We will review and update our targets on an annual basis. Over the past 2 years, we have managed to outperform our BTP 1 targets, and we have every intention to continue to exceed the targets set in our scorecard.”
The airline is confident, he also said, because the BTP 2 is developed based on ‘aiming and planning for the best, assuming the worst.’
Jala added, “On ‘aiming and planning for the best’, I keep pushing the team to go for the impossible targets e.g. record profit and grow in a profitable manner.
“On ‘assuming for the worst’, I told employees that we must transform to become a Five Star Value Carrier. We have to build a ship that can weather the storm, in our case, the imminent liberalisation and overcapacity in the market. Based on industry estimates, about 400 aircraft have been deployed into the Asia Pacific, South Asia and Middle East markets last year with another 400 expected this year. This situation of overcapacity, the proliferation of LCCs and the liberalisation of ASEAN skies, will lead to erosion on prices and margins. To remain a key player, we need to become more competitive. Hence, the idea of FSVC.”
Source: Malaysia Airlines
Posted by: just4airlines.com at 0220h UTC Feb 02, 2008
