MAB finishes 2016 ahead of budget, to use A380s for Haj, Umrah market

PETALING JAYA: Malaysia Airlines Bhd (MAB), which recorded smaller losses than projected in 2016, is in the midst of finalising plans to form a new airline for the Haj and Umrah market.
"Malaysia Airlines finished 49% ahead of our budgeted loss for the year 2016," it said in a statement today.
Currently, the group said it is working towards finalising plans for the formation of a new airline, utilising six A380 aircraft, to service the Haj and Umrah market.
Interviews for key positions for the new airline have already been initiated, and talks with Airbus underway to increase the seat capacity of the aircraft to 720 seats, it added.
For the fourth quarter ended Dec 31, 2016, its passenger load factor improved to 81% year-on-year, from 70% in the same period in 2015, achieving 90% in the month of December.
Overall, the group said it recorded a smaller loss than initially projected under its business plan for the fiscal year 2016.
On prospects, MAB said it remains cautious on its outlook for 2017, noting that the weakening ringgit, overcapacity and intense competition, will be dominant themes for the year.