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Malaysia Airlines Cargo Sdn
Bhd (MASkargo) is ready to negotiate competitive
rates with prospective importers who want to fly
goods out of Australia due to the current low
load factor.
According to the Malaysia Airlines’ (MAS) cargo
arm, capacity exceeded demand for shipment out
of Australia especially since export of
perishable items has reduced due to the drought
that had plagued the country over the past three
years.
This is contrary to the robust demand for
shipment into Australia, the strongest market
for MASkargo.
Currently, Australia is importing a lot of goods
from China and Europe via Kuala Lumpur, which
serves as a transhipment hub. Consolidation of
goods from other Asean countries to Australia is
also done in Kuala Lumpur.
MASkargo general manager for business
development and sales Mohd Yunus Idris said
those who wanted to import goods from Australia
on a regular basis could discuss with MASkargo
for more competitive airfreight rates.
“We have four weekly flights to Australia via
our freighter and daily flights via passenger
aircrafts,” he told StarBiz at the 24th
International Air Cargo Forum and Exposition
2008 (ACF2008) last week.
He said the Kuala Lumpur International Airport (KLIA)
could also be the transhipment hub for
Australian goods to be flown to other countries
via MASkargo’s new Airbus 300-600 freighter
which flies the Asian routes.
The freighter’s weekly schedule includes flights
to Dhaka, Jakarta, Bangkok and Ho Chi Minh City,
Madras, Guangzhou, Taipei and Kota Kinabalu.
“In addition, we also have our passenger
flights’ cargo belly capacity. These flights are
well connected to all Asian countries,” Mohd
Yunus said.
MASkargo too has not been spared from the
sluggish trade that has affected the majority of
international commercial transportation
companies and admits it has already felt the
pinch.
MASkargo managing director Shahari Sulaiman said
there has been a 5% reduction in volume to-date
in the second half of the year.
“Due to the good performance in the first half
of the year, our total volume to date is 3%
higher against the same period last year. By
year end, we expect the growth to be flat,” he
said.
Shahari anticipates revenue to rise slightly
higher to about RM2.8bil this year from the
RM2.7bil last year.
“This is because of higher fuel surcharge
experience in the middle of the year,” he said.
On whether MASkargo is reducing its capacity in
line with the recent MAS announcement on the
matter, Shahari said, they had marginally
reduced their capacity as well.
“Basically, we have to protect our bottomline
from eroding rather than fight for a higher
market share,” he said.
Mohd Yunus said lower crude oil price had
reduced their operating cost significantly.
“Jet fuel and airplane lease now accounts for
about 55% of our operating cost against 70% when
crude oil was at its record high of about US$147
per barrel in July,” he said, adding that the
current oil price was still 30% higher than two
years ago.
Mohd Yunus said he was more concerned on the
global financial crisis, which is crimping
demand.
“When oil price was at its highest, we faced
competition from other modes of transportation
especially shipping.
“But, now as capacity exceeds supply in the
marketplace, everybody is talking about price
cutting. This is the pressing issue that we are
looking at now,” he said.
Mohd Yunus said MASkargo was going back to
basics to prepare itself to face the challenge.
“We are monitoring our operating cost and
retention of revenue over operations. We are
also optimising our flight operations,” he said.
Citing an example, he said, if the operational
cost of the China-Europe flight was higher via
Malaysia and Dubai, a more cost effective
alternative stopover via Tashkent was available.
“Reducing flying time is vital as the
operational cost of flying a freighter now is
about US$18,000 per hour. We are also very
cautious on expansion and exploring new markets
at this point in time,” he said.
The ACF2008 hosted by MASkargo was a success.
There were more than 4,000 participants with an
excess of 200 exhibitors comprising 70 airlines,
freight forwarders, customs brokers, shipping
companies, and logistics providers that attended
the three-day event.
Malaysia is the first Asean country and the
second in Asia after Hong Kong, to host the
prestigious event organised by the International
Air Cargo Association. |
