Airlines going bankrupt!
June 30th, 2008 | by Dusk |
In an open letter to the general public yesterday, MAS managing director and chief executive officer Datuk Seri Idris Jala said it has no choice but to pass on the cost of fuel to consumers.
Jet fuel price has increased by 80 per cent since last year from an average of US$90 (RM293) per barrel to US$166 (RM541) per barrel.
On the carrier’s part, over the last three years, fuel costs as a proportion of its total operating expenses have about doubled from 15-20 per cent to 30-40 per cent.
“Over the last six months, 24 airlines have gone bankrupt. Many airlines around the world have also declared massive losses in the first three months of 2008.
“Put bluntly, if these adjustments don’t take place - and quickly - the airline industry will collapse and have a ripple effect throughout the entire world economy,” he said.
“Airlines cannot continue to subsidise passengers anymore,” he added.
Idris warned that the landscape is changing where “the number of carriers become fewer and competition fizzles out in favour of consolidation”.
This means greater demand for remaining seats, which translates into higher ticket prices.
Source: NST
MAS new planes
Real figure of the airlines that went bankrupt might be over 40+. Talking about airlines going bankrupt, many airlines canceled their purchase of the Boeing 737-800 NG and the Airbus a380. That means MAS can get their plane early right? Yes.
But MAS wont. They will not take the plane any earlier. They will proceed as scheduled. The first batch of leased 737-800 will be operational by March 2009. The ones owned by MAS will probably arrive end of 2010