KUALA LUMPUR: Malaysian Airline System Bhd (M AS) yesterday posted a smaller than expected loss in the second quarter of 2014, as Khazanah Nasional Bhd unveils a comprehensive plan today to steer the national carrier back to profitability.
MAS said its second quarter ended June 30 net loss grew to RM307 million from a net loss of RM176 million a year ago, on the back of lower revenue of RM3.6 billion from RM3.78 billion a year ago.
However the result was an improvement from the net loss of RM443 million it reported in the first quarter and bettered some analysts’ estimate of a RM600 million loss.
The airline, which warned of poor second-half earnings as passenger bookings continued to fall after the loss of two aircraft in separate disasters this year, is expected to face a drastic shakeup, from a revamp of its board and senior management to job cuts and network rationalisation.
An industry obverver said MAS might even rope in former Malaysia Airports Holdings Bhd managing director Tan Sri Bashir Ahmad Abdul Majid to join its board to inject experience and expertise to help turn around the airline, which has lost money for the last three years.
Major shareholder Khazanah — the government’s strategic investment arm — which owns almost 70 per cent of the national carrier and has proposed to take the airline private, will announce the restructuring plan at a press conference today.