Restructured Malaysia Airlines unveils 5-year growth plan

01 February 2008

Kuala Lumpur: Malaysia Airlines (MAS) unveiled a five-year growth plan yesterday, which it has dubbed as the Business Transformation Plan 2 (BTP2). The plan targets minimum full-year net profits of MYR1.5 billion ($463.6 million) by 2012.

The growth plan has been announced even as the airline was declared the winner of the Air Transport World's Phoenix Award.

MAS appears well on its way to achieving the growth target set for it by posting a record MYR610 million profit in the first nine months of 2007. It has forecast a MYR700 million profit for the full year.

The forecast, however, comes with a warning from CEO and MD, Idris Jala, that high oil prices were a "big worry, with MAS implementing competitive hedging to mitigate risk."

BTP2 is an extension of the original Business Turnaround Plan unveiled in February 2006, which has resulted in dramatic improvements in it finances after massive losses. The five key platforms of BTP2 are developing a five-star product, lower structural and operational costs, competitive fares, increased passengers and network growth.

A key part of the transformation plans is the airline's fleet renewal and a decision will be taken by the end of the first quarter on either the A350 or 787 and A320 or 737-800.