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MAB Kargo to boost revenue using bellyhold of new aircraft
MAB Kargo, the air cargo unit of Malaysia Airlines, hopes to benefit from its parent's plans to double the size of its passenger wide-body fleet over the next few years from 21 aircraft to 36 since 64 per cent of MAB Kargo's revenue comes from using the belly space of Malaysia Airlines' passenger airplanes.
The remainder of MAB Kargo's revenue comes from selling space on its three Airbus A330-200 freighters.
The air cargo unit expects a turnaround in the current financial year ending December 31, after several years of losses, reported Kuala Lumpur's The Edge Financial Daily.
"We didn't achieve (a) profit last year, but the losses were very much less than what we used to book. We are on track to meet our internal target (to turn a profit) in FY17," MAB Kargo CEO Ahmad Luqman Mohd Azmi said.
He attributed the smaller losses in 2016 to the company's replacement of its Boeing 747-200 freighters with the more efficient A330-200 freighters as it restructured in 2015. This was despite a 21 per cent decline in MAB Kargo's cargo volume to 23,000 tonnes in 2016, from 29,000 tonnes in 2015.
"We wanted to shrink the network to a level that we are able to manage our business better. Even though revenue and cargo volume were down, we saw a 90 per cent improvement in our profitability compared with the year before," he said.
The remainder of MAB Kargo's revenue comes from selling space on its three Airbus A330-200 freighters.
The air cargo unit expects a turnaround in the current financial year ending December 31, after several years of losses, reported Kuala Lumpur's The Edge Financial Daily.
"We didn't achieve (a) profit last year, but the losses were very much less than what we used to book. We are on track to meet our internal target (to turn a profit) in FY17," MAB Kargo CEO Ahmad Luqman Mohd Azmi said.
He attributed the smaller losses in 2016 to the company's replacement of its Boeing 747-200 freighters with the more efficient A330-200 freighters as it restructured in 2015. This was despite a 21 per cent decline in MAB Kargo's cargo volume to 23,000 tonnes in 2016, from 29,000 tonnes in 2015.
"We wanted to shrink the network to a level that we are able to manage our business better. Even though revenue and cargo volume were down, we saw a 90 per cent improvement in our profitability compared with the year before," he said.
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