Ahmad Jauhari Yahya, the Chief Executive Officer (CEO) of Malaysia Airlines (MAS) has deined some of the allegation that the airline is facing as a result of unreliable foreign news report.
MAS denied the allegations that it is in the process of placing orders for 100 additional aircraft. According to Ahmad Jauhari, the ones that they are looking for is just the replacements of Boeing 777 planes that would be gradually retired by 2018.
Justifying the airline’s fourth quarterly consecutive loss, Jauhari explained because of an item that needs to be written off from engineering inventory. The item is said to belong to retired aircraft. The adjustment has caused the airline a negative value of earnings before interest, taxes, depreciation and amortisation (EBITDA). According to a quarterly report ending December 2013 of MAS, the EBITDA was recorded at negative RM 56 billion.
MAS has been in a series of losses throughout the years. Struggling for black digits written on its account book, MAS is still lagging behind with just 28% of carrier share in Kuala Lumpur International Airport (KLIA), compared to 56% as it used to hold back then in 2005.
Sources:
- The Star Online – Airline chiefs in M’sia speak out on price war
- The Star Online – MAS denies ordering 100 planes, expects no operating loss in coming quarters