An administrative restructure in Malaysia Airlines (MAS) operations, helped save RM 667.1 million in 2009, deputy Transport minister Datuk Abdul Rahim Bakri told Dewan Rakyat on Monday, June 14.
Abdul Rahim said in 2007, MAS' cumulative savings was RM33 million and rose to RM383 million in 2008.
"Although MAS carried out stringent cost-cutting measures, quality of service was not affected because MAS does not compromise in service and safety of passengers," he said when replying to a question by Datuk Ismail Abd Muttalib (BN-Maran) in Dewan Rakyat on Monday.
Abdul Rahim said in 2007, MAS managed to cut cost by an average of RM2.75 million a month, RM31.92 million a month in 2008 and RM56.43 million a month in 2009.
He said cost-cutting measures enabled MAS to evaluate its businesses and alternative measures to steer MAS into a more efficient airline in its drive to become a "Five Star Value Carrier (FSVC)".
Abdul Rahim added for support staff whose services were terminated, MAS had offered a 'mutual separation scheme'.
"Through the scheme, 2,636 were compensated while the remaining 19,000 staff were paid ex-gratia every year if they met the target set by the company," he said.
To an additional question by Tan Sri Abdul Khalid Ibrahim (PKR-Bandar Tun Razak) who had wanted to know why Singapore Airlines (SIA) had progressed tremendously compared with MAS after the separation, Abdul Rahim said both airlines had different business perspectives.
After the separation, MAS was not only a business venture but also carried out social obligations and socio-economic needs of the country, including flying to Sabah and Sarawak which were subsidised.
"This meant, it was not as lucrative as SIA which remains a 'city state airlines' providing and dedicating flight services to all over the world. But when compared with other airlines, we are not far behind," he said. — Bernama
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