MASkargo bullish on China operations

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo), the cargo arm of Malaysia Airlines (MAS), expects its operations in China to continue to show growth this year, despite soaring fuel prices and the less favourable global economy climate.Managing director Shahari Sulaiman said the bullish outlook is largely attributable to its freight network, which is servicing lucrative trade lanes, namely Asia to Europe, Europe to Asia as well as Europe to Australia."We are serving the right markets. We are big in China, Europe and Australia," he told reporters covering Air Cargo China 2008. "Furthermore, since the end of February, we have diverted 70 per cent of our flights into Europe to Uzbekistan. This has allowed us to serve the same market at a much reduced cost."
Air Cargo China 2008, which starts in Shanghai tomorrow, is dubbed as one of the largest gatherings of the international air cargo community. It is expected to be attended by more than 10,000 executives from the airlines, airports, freight forwarders, shippers, suppliers and service providers from all over the world.Shahari said MASkargo saw a 10 per cent year-on-year growth in cargo throughput at the KL International Airport (KLIA) in Sepang for the first two months of this year and is optimistic that the trend will sustain for the medium term.On its Chinese operations, its station in Shanghai will remain its biggest contributor in terms of revenue and expects the margin to expand although MASkargo plans to reduce the number of flights but carry more cargo there due to rising fuel cost.Fuel makes up about 40 per cent of its total operating cost."We have reduced our capacity (flights) by about seven per cent in the first quarter this year. This has resulted in an improvement in yields and profits," Shahari said.Another factor that would contribute to growth would come from the new cargo building located near the Pudong International Airport which is near completion."The new cargo building will be able to accommodate one million tonnes of freight and there will be more parking bays for freighters," he said, noting that Pudong is leading growth in cargo by more than 10 per cent.The company also plans to look for more strategic partnerships with other airlines that would improve its operations.MASkargo operates four B747-200 and two B747-400 freighters. It also offers belly space capacity on MAS' passenger fleet, servicing almost 100 destinations worldwide.The company more than doubled its operating profit to RM38 million last year, from RM18 million in 2006. -www.btimes.com.my