The founder of the world’s best budget carrier Air Asia expressed his shock over Malaysia Airlines’ consistent losses, and said Putrajaya needs to review its aviation policies if it wants to avoid burning through taxpayers’ money.
Tan Sri Tony Fernandes was shocked over the national carrier’s total losses of RM1.2 billion last financial year, as Malaysia Airlines released its earnings report yesterday, clocking in its fourth straight losing quarter.
“The whole aviation industry needs a relook,” he told The Malaysian Insider.
Fernandes said the Malaysian aviation industry’s policies and airline management need to shape up, and that MAS and Malaysia Airports Holdings Berhad (MAHB) have to start coming out at a profit to avoid burdening taxpayers.
“My point is that if you’re running a private company, could you afford to cut 16% of your costs and still lose RM1 billion?” he asked.
“It’s only because there’s taxpayers’ money that one can afford to do that. And this isn’t solving the issue,” he added.
Fernandes continued to criticise MAS and MAHB’s insistence doubling down on new expenditure to hopefully save money in the long run.
The state-owned carrier has been implementing cost-cutting measures to cut its expenses such as axing several routes and introducing lower ticket fares to increase its load.
However, the airline is also awaiting government approval to purchase 100 Airbus and Boeing passenger aircraft that would amount to several billion ringgit.
A Reuters report said that the airline’s decision to spend on newer aircraft is to boost profitability and retire its older, less fuel-efficient aircraft.
“It’s supposed to be profit-making. This just hurts decent players in the business when they’re spending like there’s no tomorrow,” said Fernandes.
Related: Malaysia Airlines suffered its 4th straight quarterly loss
Source: The Malaysian Insider
