Malaysia Airlines Cargo (MASkargo) is expecting RM2.8 billion (US$782 million) in revenue this year, up from RM2.75 billion in 2007, despite challenges in the global economy, managing director Shahari Sulaiman said recently.
In the second quarter this year, MASkargo achieved a nine per cent increase in revenue of RM586 million from RM538 million in the same quarter last year.
Speaking to reporters on the sidelines of the 14th World Route Development Forum (Routes KL 2008), Shahari said although there would be a reduction in terms of freight moving through the Asia Pacific, MASkargo was able to reduce some of its capacity to ensure that its operations remained viable.
“We are operating more efficiently. Although we reduced our capacity but we are still getting the same revenue or slightly higher revenue,” he said.
Air freight business accounted for 85 per cent of its revenue while about 10 to 12 per cent came from ground-handling services, including Animal Hotel.
Pointing out that China was MASkargo’s biggest market which accounted about 30 per cent of its revenue and freight, Shahari said the cargo carrier was also keen to explore new markets with the Commonwealth of Independent States (CIS) region, namely Kazakhstan.
On MASkargo’s expansion plans, he said: “We have to be very cautious in terms of our expansion plans. So the emphasis now is to protect the bottom line rather than increasing market share.”
Expecting the cargo industry to remain challenging, Shahari said MASkargo would look at right aircraft to serve the market and invest in information infrastructure in order to have more efficient operations.
Shahari said MASkargo had invested about US$12 million in the information technology programme in the past three years and improved its yield by four per cent.
Although its capacity was reduced by eight per cent, the cargo carrier managed to increase its load factor by nine per cent, he added.
On whether MASkargo planned to expand its fleet, Shahari said: “We are, of course, looking at the medium-term fleet plan (2010-2011). We might be introducing more freighters and retiring the old freighters.”
MASkargo operates from the Advanced Cargo Centre at the Kuala Lumpur International Airport using two of its own Boeing 747-400F and five leased aircraft, with four being Boeing 747-200SFs and an A300-600 freighter, along with belly capacity of MAS’ passenger division.
