Cost savings exercise puts new Malaysia Airlines on firm footing

KUALA LUMPUR: An initial cost savings of at least RM180mil from catering contracts plus a few hundred million more from lesser payroll expenses due to a leaner workforce for the next three years will put the new Malaysia Airlines (MAS) on a firm footing as it climbs its way to profitability in 2018 as targeted, according to an academician.

Ahmad Rizal Mazlan, the director of the Kuala Lumpur campus of Universiti Utara Malaysia (UUM), said the national carrier had for too long been plagued by bloated operational figures of up to 20% above its competitors, very high payroll costs as well as producing in-house items at uncompetitive cost levels.