MAS targeted to reduce its costs by further 7% this year. They watching their business on daily basis since they don’t know how the current economic situation will effect them.

MAS cut costs RM 900mil in 2008 and more than RM700mil in 2007.

MAS engage code-share partnership with India’s Jet Airway to expand and strenghthen MAS airline’s hub-and-spoke network and enable them to capture untapped traffic to Mumbai,Delhi,Chennai,Bengalore and Hyderabad.They target to earn up to RM12mil revenuw per annum from the code-share partnership.

Controversy about AirAsia want to build its own airport since the low-cost terminal in Sepang cannot cope withpassenger and fleet growth in the future.AirAsia want to reduce landing and other charges which could increase due to not enough facilities and AirAsia afraid that Malaysia Airport Bhd (MAB)plans to expand its facilities in KLIA will not be completed.They want to build their own airport to keep expenses low which will give benefit to passenger.

Malaysia goverment should resolve the issue since it can effect the countys’s tourism sector. Since the Prime Minister had give the green light to AirAsia to build new airport but Khazanah Holding tried to negotitae with the senior Finance Ministry to review its decision on the new airport.

I think that MAB should expand the facilities in KLIA for AirAsia to operate so there is no need no build new aiport which would be waste of money in this time economic crisis.