Published: Thursday June 21, 2012 MYT 3:14:00 PM
Malaysia Airlines targets to be profitable by 2014
KUALA LUMPUR: Malaysia Airlines aims to return to profit by 2014 under its renewed business plan as it seeks to focus on revenue and use efficient aircraft.
Its chief executive officer Ahmad Jauhari Yahya had on Thursday unveiled the plan to shareholders at the airlines AGM.
He said MAS would use proper and efficient aircraft for certain routes, reduce the aircraft maintenance cost and manpower also.
MAS posted net losses of RM171mil in the first quarter ended March 31, 2012, which were lower compared with the RM242mil a year ago.
On June 12, MAS issued RM2.5bil of perpetual junior bonds, of which RM1bil was fully subscribed by Kumpulan Wang Persaraan Diperbadankan) (KWAP).
The airline's debt offering was part of a RM2.5bil programme and the initial RM1bil sukuk will pay a "prevailing-market profit rate".
The funds raised would be used for working capital and to refinance existing loans, it said.