'MAS needs to review cost structure'

Malaysian Airline System Bhd (MAS) may need to undertake an in-depth review of its cost structure as well as adopt a more efficient financial management model to stem its losses. Independent non-executive director of Affin Bank, Datuk Seri Abd Aziz Abd Rahman said eventhough MAS has been attempting to contain its losses by appointing new faces in the company, it may not bring any changes. "Many tranformations carried out by MAS, such as bringing in Tajudin Ramli and Idris Jala, but that didn't work out. It received the service excellence award but that did not translate into profits," he said this to reporters after the closing ceremony of 2012 Pahang Economic Convention here today. Abd Aziz was asked to comment on the announcement of the MAS' net loss of RM1.28 billion incurred in the foruth quarter of last year, yesterday, following the global increase in fuel costs and its high expenditure. Abd Aziz, who is also President of Council of Former Elected Representatives (Mubarak) elaborated that MAS also need to mitigate its losses with specific sectors such as enhancing the services under MASKargo. "As the national carrier, it carries the Malaysia name worldwide, if it is unable to provide services to Rome (Italy) and Buenos Aires (Argentina) because they are unprofitable, what is MAS' role? he asked. "In fact, I was made to understand that the two destinations are favourites among Australians. If these routes were stopped, it may also affect the KL-Sydney and KL-Melbourne routes as well," he added. Abd Aziz, who is also moderator at the convention, urged for the establishment of Pahang State Economic Advisory Council comprising experts from various fields to strengthen the state's economy. "This is a 'smart-partnership' and it will be able to expedite Pahang's development agenda towards 2020," he said. -- Bernama