MAS Lands RM5.31b Financing

Malaysian Airline System Bhd (MAS) has secured a RM5.31 billion fund mainly to pay for aircraft purchases, including its new super jumbos.

MAS yesterday said it had sealed a master facility agreement with Turus Pesawat Sdn Bhd for the RM5.31 billion Islamic loan.

Turus Pesawat is a special purpose company fully owned by government-owned Minister of Finance Inc.

The fund will be used by MAS to buy eight Airbus aircraft comprising six A380-800 super jumbos, one A330-200F and A330-300.

The financing facilities are for up to 20 years and secured against the eight aircraft, MAS said in a brief announcement to Bursa Malaysia yesterday.

Late last week, MAS third A380 aircraft arrived at the KL International Airport in Sepang. The national carrier will receive its fourth A380 by end of this week.

The national carrier is the eighth operator of this new aircraft and will receive its remaining two A380s by the first quarter of 2013.

MAS recently said it had targeted to be profitable again by 2014, an extension of a year from its turnaround plan announced in December last year.

The carrier reported a net loss of RM517 million in first half of 2012, but analysts said its fortune should change in second half of 2012.

Analysts expect MAS to return to the black in the third quarter ended September 30 2012, its first profit since the fourth quarter of 2010, on the back of higher load factor, lower fuel costs and capacity cuts.

The airline saw better numbers in the second quarter, with a core net loss of RM160 million from losses of RM357 million in the preceding quarter.

MAS had attributed the improvement to a 10 per cent to 12 per cent capacity cut on loss-making routes, the disposal of old aircraft and efficiency gains.

The stock closed 1 sen higher to RM1.04 yesterday.

- http://www.btimes.com.my