Malaysia Airlines' turnaround plan gains traction
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Malaysia Airlines (MAS) is on track to become profitable by end-2014, as its turnaround plan gains traction and receives the backing of its unions, according to group chief executive officer (CEO) Ahmad Jauhari Yahya.
“It is gaining momentum and going in the right direction. We are generating positive cash-flow now. We want to build sustainable profits, hopefully, by the end of 2014. There is still a lot to do,” he said at a briefing on its business plan.
He said the airline now had a cash balance of 5.5 billion ringgit (Bt53 billion), following a series of corporate exercises and net gearing ratio being reduced to 1.3 times.
Ahmad Jauhari also disclosed that the carrier’s unions were “fully behind its turnaround plan”, confirming a StarBiz report on Wednesday. StarBiz had reported that Ahmad Jauhari had finally secured the buy-in of its powerful unions in his efforts to turn around the carrier.
