Case study : Malaysian Airlines (MAS)

Malaysian Airlines (MAS) was sucessful in its business turnaround plan. Headed by the ex-Shell oilman, Idris Jala, MAS was able to turn the aviation business from massive loss to profit within a short period of time. Being Malaysian myself, I'm very proud of Idris Jala's move. I'm sure it must be difficult to make this change.

Without his business turnaround plan, we may not even have a national carrier now. Way to go , Mr Idris!

The press release below shows how he did it.

Malaysia Airlines Announces Net Profit of RM121 Million for Q406

Full Year Results Exceed RM1.1 billion BTP Improvement Target

Kuala Lumpur (26 February 2007): Malaysia Airlines today announced a net profit1 of RM121 million for the quarter ending December 2006, its second consecutive profitable quarter since the unveiling of its Business Turnaround Plan (BTP) in February 2006.

Malaysia Airlines also made a Q406 operating profit (before finance costs and exceptional items) of RM94million, its second successive operational profit for the year. The airline’s strong performance was mainly driven by two key factors: a marked increase in passenger revenue and cost reductions.

For its 2006 full year results, Malaysia Airlines exceeded its RM1.1 billion BTP improvement target. The national carrier made a loss after tax of RM136 million, which is a RM1.6 billion improvement over the RM1.7 billion base case loss for 2006 as announced in the BTP.

Mr Idris Jala, Malaysia Airlines Managing Director/ Chief Executive Officer said, “I am delighted with our second consecutive operational profit which clearly shows the success of our BTP, which is heavily focused on delivering immediate results by anchoring everything on the P&L.

refer full story at http://www.jeffooi.com/MAS_Media-Release-Q406_Final.pdf