Malaysian Airline cuts unprofitable routes to stem losses
Malaysian Airline System will cut several unprofitable routes in a move that could help the national flag carrier save between US$68 million and $94 million in 2012, reported Dow Jones Newswires.
The airline said it would withdraw from routes to and from Surabaya, Johannesburg and Rome, among others, which account for almost 12 percent of passenger capacity, in stages beginning from January 6.
The move is expected to have "minimal impact" on its cargo operations, it said, but didn't elaborate.
"We also hope to return to these markets after we have stabilised our business," said Malaysian Airline chief executive Ahmad Jauhari Yahya.
The move follows last week's cost-cutting measures unveiled by the airline aimed at turning around the company and improving profit by between $350 million and $472 million in 2012.
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