BN’s Bullshit On MAS Revealed
By Sarawak Headhunter
MAS announced it's second quarter results today. Net profit was RM876 million and offset the first quarter loss of RM695 million for a first half profit of RM181 million.
That announcement managed to brush aside analysts' expectation of further loss. Why bother about these life is a straight line forecast and everything remain the same like before analysts?
With the new accounting scheme of mark-to-market for any outstanding futures hedging, the real number that needs highlighting was intentionally hidden. Read on to know the stories shrouding their fuel hedging debacle.
The financial presses were really being 'bodoh'. None bothered to ask about the operating profit and loss. In the first quarter, MAS posted an operating loss of RM138 million. What was the second quarter like?
Read the Bernama report first below:
MAS Posts Net Profit RM876 Mil In Q2
KUALA LUMPUR, Aug 6 (Bernama) — Malaysia Airlines (MAS) posted net profit RM876 million in the second quarter ended June 30, 2009, the highest ever quarterly net profit recorded by the airline.
This profit offsets the national carrier’s RM695 million net losses in the first quarter, leading to a first-half net profit of RM181 million.
Due to the oil price recovery since March 31, 2009, MAS’ fuel hedging losses of RM640 million in the first quarter has been reversed with a RM1.3 billion gain in the second quarter, the airline said in a statement.
Since the beginning of the year, the airline has implemented aggressive sales campaigns to deal with the worst crisis facing the industry.
It successfully increased its load factor to 66 per cent in the second quarter, a double digit growth of 10 per cent compared to 56 per cent in the first quarter.
In response to the growing demand, with the domestic load factor up by 69 per cent in the second quarter, it said the national carrier had increased the capacity by six per cent by adding more aircraft for the domestic sector.
The airline also made substantial load factor gain for its international routes with loads up 11 per cent to 65 per cent compared to 56 per cent in the first quarter.
“We are managing well in this crisis. While the operating environment remains tough, the load factors have increased due to our aggressive strategies to boost sales.
“On the domestic front, more passengers are travelling with us,” managing director/chief executive officer Datuk Seri Idris Jala said.
“On international routes, we have performed better than the industry average as we are less dependent on the front end,” he said, adding that the airline forecast booking numbers for the second half of the year are encouraging.
All that bullshit about rising load factor and yet no mention of operating P&L.
So this super Orang Ulu Idris Jala is revealed as being just another bullshitter. The reward: make him a Federal Minister so that he can teach Najib and the rest of the Cabinet how to bullshit properly.
In the first place, load factor is the old variable to manage an airline. Pushing for purely load factor was the one that got former Managing Director Dato Fuad the boot for taking MAS into loss territory immediately after the financial restructuring. The fancifully named sell and leaseback scheme made Azman Mokhtar's Binafikir famous.
Read more at: "BN's Bullshit On MAS Revealed"
