KARACHI: Malaysia Airlines has informed the local authorities of its decision to suspend its two weekly services to Karachi from January 12, 2012, to stem losses in an effort to return to profitability.
“The decision is much regretted as Malaysia Airlines has served Karachi for over 22 years,” said a communication sent by the airline to the local authorities. In an attempt to cut losses, Malaysia Airlines as part of its ‘route rationalisation exercise’ plans to withdraw from eight loss-making routes beginning January next year.
The routes are Kuala Lumpur-Surabaya, Kuala Lumpur-Dubai, Kuala Lumpur-Karachi-Dubai, Kuala Lumpur-Dubai-Damman, Langkawi-Penang-Singapore, Kuala Lumpur-Johannesburg, Kuala Lumpur-Cape Town-Buenos Aires and Kuala Lumpur to Rome.
According to Malaysia Airlines Group Chief Executive Officer Ahmad Jauhari Yahya, the eight routes account for almost 12 percent of passenger capacity and the withdrawal would improve loads, increase yields and have a profit impact of RM220 to RM302 million next year.
The route rationalisation is expected to have minimal impact on Malaysia’s position as a top tourist destination in Asia as they would work with code share partners. The airline expects to return to these markets after the company’s financial status is stabilised.
In a written statement, Malaysia Airlines said it regrets any inconvenience caused to its passengers and assured customers that it will honor all forward bookings ticketed to date on the affected routes. Malaysia Airlines claims the impact on its Cargo division will be minimal as the carrier continues to maintain its key cargo destinations in Australia, Europe, UK, Middle East, South Africa and the US.