Friday, September 8th, 2017

 

Wall Street opens lower as Irma powers toward Florida (VIDEO)

NEW YORK, Sept 8 — US stocks opened lower today as investors assessed the financial impact of Hurricane Harvey and tracked Hurricane Irma as it ploughed toward Florida. The three major Wall Street indexes were on track to end the week lower,…


Wall Street opens lower as Irma powers toward Florida

NEW YORK, Sept 8 — US stocks opened lower today as investors assessed the financial impact of Hurricane Harvey and tracked Hurricane Irma as it ploughed toward Florida. The three major Wall Street indexes were on track to end the week lower,…


Malaysia Airlines on track to be profitable

KUALA LUMPUR, Sept 8 — Malaysia Airlines, which managed to increase its year-on-year passenger load factor by 16.9 per cent in the second quarter 2017 (2Q17) compared with the same quarter in 2016 (2Q16) amid heightened competition, is still on…


Golden Land to develop RM8.9b mixed development project in Melaka

KUALA LUMPUR, Sept 8 — Golden Land Property Development (M) Sdn Bhd has signed a joint-venture (JV) agreement with CCCC Third Harbor Consultants Co. Ltd (CCCC) and Fleur Capital to develop Cheng Ho City, a mixed-development project with a gross…


Malaysia Airlines sees tough Q2, load factor drops 1.6%

PETALING JAYA: Malaysia Airlines (MAS) said it experienced a tough second quarter (Q2) with heightened competition and adverse forex movement.

However, the national carrier said in a statement that load factor continued to be strong at 77.8% in Q2, a marginal reduction from 79.4% in the first quarter this year, while passenger revenue saw positive year-on-year growth amid the tough operating environment.

“The second quarter passenger revenue saw an increase of 8%, on the back of 1.8% higher capacity (ASK) compared to same period last year,” group CEO Peter Bellew noted.

MAS said the lean travel period during Ramadhan presented challenges, but these were offset by the Hari Raya peak period.

“MAS managed to increase international loads compared to Q2 2016 by a significant 16.9%, whilst only sacrificing a reduction of 4.5% in average fare.”

Nonetheless, it continues to see a challenging environment in the domestic sector due to overcapacity and relentless competition, which led to a small reduction in domestic loads to 73% from 75.2% in Q2 2016.

“Moving forward we remain focused on improving services with a better steer on pricing. We have already seen progress on this front via a 2.6% increase in domestic average fare,” said Bellew.

Given the adverse impact on foreign exchange and a challenging competitive environment, reducing costs will remain a focus for MAS in 2017.

“The quarter saw continued cost management initiatives to generate more savings in several areas across the various divisions. This included a total of 77 operations initiatives registered and tracked for FY2017.”

To date, the programme has registered a 48% completion rate with estimated savings of nearly RM14 million for the quarter and a total savings of RM16 million for the first half of 2017.

MAS, which is on track to be profitable in 2018, said it remains cautious on this year's outlook as the aggressive price war on the domestic market is expected to continue with a weak ringgit and increased fuel prices adding to an already challenging cost environment.

While advance bookings are far stronger in 2017 than 2016, it is seeing yield pressure across all routes as low fares are available from many legacy carriers as well as the traditional low cost carriers.

“For MAS, the market is diverging with consistent growth and improvement on international services, but a loss of market share domestically where fares are increasingly low.”


Malaysia will continue to play active role in Asean integration, says Miti

KUALA LUMPUR, Sept 8 — Malaysia will continue to assume an active role in driving regional economic integration under the second phase of the Asean Economic Community Blueprint, especially in championing the efforts to resolve the long-standing…


Ringgit records gains against US dollar

KUALA LUMPUR, Sept 8 — The ringgit ended higher today against the US dollar of within a ten-month high as the domestic monetary conditions are supportive of growth, says a research firm. At 6pm, the local unit was quoted at 4.1920/1970 against…


Fresh China worries hit Hyundai, suppliers even as plant restarts (VIDEO)

SEOUL, Sept 8 — Shares in Hyundai Motor and its suppliers slid today on fresh worries over their position in China after highly critical state newspaper comments, even as the South Korean automaker managed to get a Chinese car plant restarted….


Asean welcomes China’s proposal to further enhance, integrate economic, trade ties

MANILA, Sept 8 — The Association of Southeast Asian Nations (Asean) today welcomed China’s proposal to synergise the Belt and Road Initiative with the bloc’s development strategy to further enhance and integrate China-Asean economic and…


Bursa Malaysia ends mixed in tandem with regional bourses

KUALA LUMPUR, Sept 8 — Bursa Malaysia ended mixed today in tandem with the mixed performance on regional bourses, with last-minute buying pushing the broader market into the positive territory, dealers said. At close, the key FTSE Bursa…