Tag Archives: A330-223

Malaysia Aviation Group posts turnaround in operating profit at RM556mil from a loss of RM767mil a year ago

Malaysia Airlines Airbus A330-223 9M-MTY (msn 968) (Negaraku) DPS (Pascal Simon). Image: 946467.
  • Record Net Profit After Interest and Tax of RM1.146bil in Q42022
  • Net operating profit of RM556mil for full year 2022 with 2 consecutive quarters of operating profit
  • 272% improvement in EBITDA at RM+1.61bil compared to +ve RM433mil a year ago
  • Passenger traffic and capacity increased by 5.7X and 6.9X YoY
  • Strong load factor of 81% in Q42022 and average load factor of 75% for 2022

Malaysia Aviation Group (Malaysia Airlines) marked one of its best ever quarter performance since the past two decades attributed to robust demand, higher yield across passenger and cargo business segments as well as effective cost management and cashflow optimisation, despite higher fuel prices and labour costs, weaker ringgit (MYR) and lower than pre-pandemic flight capacity levels. MAG achieved record net profit after interest and tax of RM1.146bil in Q422. For full year 2022, the Group recorded net operating profit of RM556mil, while net loss after interest and tax for the year reduced 79% to RM344mil from RM1.65bil a year ago. Cash balance stood at RM4.6bil at end 31 Dec 2022.

The Group also saw improvement across all its business segments during the year. Cargo subsidiary, MABkargo Berhad (MABkargo) recorded marginally weaker performance compared to a year ago amid softening of global freight demand and increased capacity in the market in the 2H22. Main airline, Malaysia Airlines Berhad’s (MAB) total revenue tripled compared to the year before, underpinned by strong demand on the international sector for both passenger travel and cargo freight. 

Operational Highlights

Airline Business

  • MAB achieved breakeven at operating profit level, an exceptional turnaround from operating loss of RM612mil a year ago.
  • Passengers carried was 6.7X higher than previous year with load at 62% higher while yield declined by 16% with more capacity deployed.
  • MAB On-time Performance (OTP) is down at 82%, compared to 89%  a year ago.
  • MAB recorded a slight downtrend in Customer Satisfaction Index (CSI), which was 79% Year-to-Date (YTD) compared to 84% in 2021 with the airline’s Net Promoter Score (NPS) reduced to +31 points in 2022 compared to +54 points in 2021. The airline faced challenges with its OTP and customer experience during the year and is committed to improving its performance in these areas with the immediate formation of a Customer Experience Taskforce comprising key business units including Engineering and In-flight Operations.
  • In 2022, MAB has refurbished eight Boeing 737-800 NG aircraft to include new lighter seats, interior and introduced MH Studio, an innovative wireless in-flight entertainment onboard. 
  • In partnership with Qatar Airways, MAB doubled its capacity between Kuala Lumpur and Doha with a second daily nonstop flight in August 2022, in response to high passenger demand on this route. With this MAB was able to further grow its network and connect to more destinations in North America, Europe and Africa.
  • Firefly maintained in loss position for 2022, on the back of weak yield and demand for both ATR and jet operations.
  • Firefly resumed jet operations from the Penang hub on 11 April 2022 with daily return flights from Penang to Kuching and Kota Kinabalu.
  • Amal recorded its first year of profit from a loss position a year ago with the resumption of Hajj/Umrah travels.

Aviation Services

  • MABkargo’s performance remains strong amid weakening of cargo demand in Q42022. MABkargo achieved higher CTKM by 17% against target and maintaining its yield year on year.
  • MAB Engineering continue to gain traction and performed well with third party revenue now contributing to 30% of its revenue.
  • AeroDarat Services recorded an improvement of 66% on its financial performance year on year. The number of flights it handled doubled during the year compared to a year ago.

Loyalty & Travel Services

  • Enrich, MAG’s loyalty business segment more than doubled its revenue during the year with higher flight redemptions as the Group resumes flights to more destinations during the year.
  • Journify, an integrated one-stop lifestyle digital platform representing the e-commerce and travel services business portfolio of MAG saw a good traction recording 10.04 million new customer traffic on its website.

Outlook – Remarks by Group Managing Director, Captain Izham Ismail

MAG has emerged from the COVID19 on a strong financial footing and is charting an upward financial trajectory, however, there are still many areas for improvement especially in OTP and customer experience. The Group is fully committed to addressing these gaps and delivering an unparalleled customer experience.

Travel demand outlook remains strong in the near term, although macroeconomics environment remains very challenging with sustained high fuel prices, volatile forex, higher operating costs due to inflation, labour constraints, recession and geopolitical risks.

With China’s border reopening in January 2023, MAB aims to regain the remaining capacity for its entire network which currently stands at 85%, and fully recovering services to China and North Asia by the end of 1H23. This will spur economic growth between Malaysia and China, boosting the overall business and trade links between the two countries.

In line with its Long-Term Business Plan 2.0 and continuing the growth of Firefly jet operations, MAB will be transferring in phases intra-Borneo services and Kota Kinabalu international services to Firefly, as a result of continued positive demand recoveries across all the markets.

Amal plans to ramp up capacity by at least 10% in 2023 to meet surging in demand where total Umrah traffic today has exceeded pre-Covid-19 level and Hajj quota is back to normal level. Amal will look into inducing demand in Malaysia as well as exploring opportunities outside Malaysia as part of its long-term growth plan.

In terms of fleet, MAG looks forward to taking delivery of four out of 25 Boeing 737-8 from 3Q23 onwards, which will see it deliver operational improvement directly with lower fuel cost and improve total network efficiency.

The Group continues to accelerate its Sustainability Blueprint agenda in all sectors, inspiring positive change through various initiatives. In addition to supporting the United Nations’ 13th SDG (Climate Action), these initiatives target three other SDGs: Goal 5 (Gender Equality), Goal 7 (Affordable and Clean Energy), and Goal 12 (Responsible Consumption and Production).

Top Copyright Photo: Malaysia Airlines Airbus A330-223 9M-MTY (msn 968) (Negaraku) DPS (Pascal Simon). Image: 946467.

Malaysia Airlines aircraft photo gallery:

Malaysia Airlines aircraft photo gallery

Air Greenland says goodbye to its Airbus A330-200 after 20 years, now in Marana, Arizona

Air Greenland Airbus A330-223 OY-GRN (msn 230) ZRH (Rolf Wallner). Image: 922693.

Air Greenland’s only Airbus A330-200 (OY-GRN), named “Norsaq”, flew a ferry flight from Copenhagen – on its final flight. Norsaq’s final destination is Pinal Airpark in Marana, Arizona, but first it will stop in Tucson for customs and immigration clearance.

Many have been eagerly awaiting to know what will happen to Norsaq after its last scheduled flight on February 16, 2023. Now we can reveal this.

– The keys to Norsaq will be passed on to its new owners called AAR SUPPLY CHAIN and Norsaq will thus end up as an “organ donor”, i.e. as a spare aircraft, says Air Greenland’s technical manager for the transatlantic aircraft, Henrik Keil and continues. 

– The handover will take place on Monday, March 13, 2023 in a hot desert in Arizona. This is in stark contrast and against Norsaq’s will, he says, pointing out that Norsaq has grown up and been brought up to be a cold-weather aircraft and has only very rarely caused problems due to cold weather.

– Even down to minus 40 degrees. There have sometimes been a few complaints and disagreements, but mostly due to a little too much downtime. Hardly at all during the busy periods.

Some of our colleagues in Copenhagen literally wrote a farewell to Norsaq yesterday, Wednesday 8 March 2023.

Some of our colleagues in Copenhagen literally wrote a farewell to Norsaq, on Wednesday, March 8, 2023.

Norsaq’s many years of faithful service thus ends after many charter trips with happy sun tourists, flights with soldiers to Kuwait and Calgary and with Greenlandic athletes who have participated in the Arctic Winter Games in various places in Canada. But the day-to-day job was of course to be the lifeline between Greenland and Denmark. Keeping an aeroplane in the air for over 20 years requires a dedicated effort.

– This would not have been possible without a large number of truly dedicated technicians from SAS who have faithfully looked after her night after night, caring for her better than their own car and maybe even a partner back home.  Never has there been any whining and complaining. Always Norsaq has received special attention and what in the car world is cleverly called TLC. Tender, Love and Caring, says Henrik.

The flight route that Norsaq will fly tomorrow Friday 10 March goes straight over Nuuk and as we want to ensure the route is as sustainable as possible, it was most obvious that Norsaq went low over Nuuk, which will also be Tuukkaq's new permanent destination when the new runway opens in 2024.

The flight route that Norsaq flew on Friday, March 10, straight over Nuuk and as we want to ensure the route is as sustainable as possible, it was most obvious that Norsaq went low over Nuuk, which will also be Tuukkaq’s new permanent destination when the new runway opens in 2024. 

Video:

https://youtu.be/-l51oO3MD8I

Also in its own ranks, Air Greenland has swept the runway clear so that things were ready and prepared for troubleshooting and planned maintenance of the aircraft.

– This with Peter Bjerre, Lars Christensen, Jens Laurberg, Michael Linder, Mia Mandal, Gert Bo Petersen and Bo Møller who over the years in turn have been a large part of Norsaq’s foster parents.

In Greenland, Johannes Holst, Rudy Mynster, Morten Lanther Larsen, Jan Mejlgaard Larsen and not least our current two technicians Kasper Zeeb Andersen and René Fencker Holm have been ready with headsets on all flight days, asking if everything was OK so that we could fly safely back to Denmark with the up to 140,000 passengers who are flown across the Atlantic every year, he says and puts the farewell to Norsaq in his own words.

– It will be a huge loss, and to my knowledge, there are not many other aircraft in the world that have received the same attention when Norsaq was away from its usual route. It was the red “salami” that all aircraft spotters wanted to have on their lenses, concludes Henrik Keil.

The pilots on the ferry flight will be Michael Madsen (chief pilot A330), who will fly Norsaq's last trip. He was also the pilot who flew Tuukkaq's very first flight. Thomas Kjærulff, senior first officer, will be first officer. He is also the pilot with the most flying hours on the right side of an A330.

The pilots on the ferry flight will be Michael Madsen (chief pilot A330), who will fly Norsaq’s last trip. He was also the pilot who flew Tuukkaq’s very first flight. Thomas Kjærulff, senior first officer, will be first officer. He is also the pilot with the most flying hours on the right side of an A330. 

Technical Manager, Henrik Keil and Michael Linder, Technical Coordinator are also on board for the ferry flight to Arizona together with two representatives from the buyers, AAR SUPPLY CHAIN. The picture is Henrik on the left and Michael on the right and was taken at the handover of Tuukkaq, which now awaits their full attention, care and nurturing.

Technical Manager, Henrik Keil and Michael Linder, Technical Coordinator are also on board for the ferry flight to Arizona together with two representatives from the buyers, AAR SUPPLY CHAIN. The picture is Henrik on the left and Michael on the right and was taken at the handover of Tuukkaq, which now awaits their full attention, care and nurturing.

Did you know this

Norsaq’s flying hours in Air Greenland have totalled 41,364 flying hours and 10,112 take-offs and landings. In other words, it has virtually flown 4800 times up and down the North Atlantic. This has required two undercarriages, two x 2 engine overhauls and 2 APU overhauls as well as a newer APU due to a bearing failure

Norsaq Deices

20 years with Norsaq

Now in Arizona

Top Copyright Photo: Air Greenland Airbus A330-223 OY-GRN (msn 230) ZRH (Rolf Wallner). Image: 922693.

Air Greenland aircraft photo gallery:

Air Greenland aircraft photo gallery