Tuesday, February 24, 2009

Moment of truth for Idris Jala

Could the global economic meltdown unravel the remarkable recovery achieved by Malaysia Airlines (MAS) over the past three years?

It is a question which could be answered on Thursday when the airline unveils its full-year results for 2008. The results could also be a verdict on managing director Idris Jala’s efforts to put it on a stronger footing through drastic measures over the last three years.

The airline posted a profit of RM198 million during the first nine months of last year.

But with travel demand collapsing in the October- December period, analysts forecast full-year earnings at only between RM190 million and RM210 million – implying almost zero bottomline growth during Q4 FY08.

This is far short of the airline’s own profit target range, made last year, of RM400 million to RM1 billion.

Still, the fact that MAS will remain in the black at all this year is vindication of Mr Idris’s efforts to boost yield, cut inefficient routes, raise productivity and bring costs under control – goals he outlined in his now-famous Business Turnaround Plan (BTP) in 2006.

Related posts:
* Who is Idris Jala
* For those in the doubt, check out Idris Jala's religion

More news at MalaysianInsider - Moment of truth for MAS

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