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MAS targets RM1bil profit every year

KUALA LUMPUR: Malaysia Airlines plans to make RM1bil in profit annually for the next five years under its new business transformation plan (BTP2).

The national carrier is also aiming to increase its profit by 50% to RM1.5bil after 2012.

These lofty targets are contained in the BTP2 which will be launched tomorrow. Details were released to Bursa Malaysia in a statement last evening.

“The philosophy behind the BTP2 is aiming and planning for the best, assuming the worst.

“On aiming and planning for the best, MAS will go for the seemingly impossible target, that is, record profits.

“On assuming the worst, MAS must transform to become a Five-Star Value Carrier (FSVC). MAS has to build a ship that can weather the storm, in its case, the imminent liberalisation and overcapacity in Asia,” the airline said in its statement to Bursa.

The BTP2 replaces the Business Turnaround Plan, which was launched two years ago. The original plan was only set to be completed by the end of this year, and MAS planned to make a profit of RM500mil.

But the turnaround was so successful that the target was reached last year when it made over RM610mil in profits in the first nine months of the year.

It is widely speculated that MAS will breach the RM1bil mark when the fourth quarter profits are totalled. The 2007 performance is expected to be announced on Feb 25.

The national carrier explained that an FSVC could withstand the competition it faced from other full service carriers and low-cost airlines by providing quality services at competitive prices.

MAS also stated that its target for the next five years was based on the scorecard set for government-linked companies by Khazanah Holdings but was confident that it would reach the highest level of the requirements.

Under the GLC goals for this year, a profit of RM400mil to RM550mil was considered on target, RM551mil to RM650mil profit exceeding and RM651mil to RM1bil outstanding.

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