MASkargo sees growth, but seeks partnerships to raise revenue

MALAYSIA Airlines Cargo (MASkargo) is forecasting moderate growth next year driven by the recovery of the air cargo industry, IT upgrades and new partnerships the company plans to forge with other airlines.

Newly-appointed managing director Shahari Sulaiman predicts the carrier will see about 5 - 5.2 per cent growth in cargo in 2008, up from the 4 per cent increase this year, according to a report by Malaysia-based The Edge Financial Daily.

On the other hand, he expects this year's net profit will "be flat." MASkargo made a pre-tax profit of MYR179 million (US$51 million) for its financial year ending December 31.

"For the first six months this year, IATA predicted growth would be 5 per cent, but instead it only reached 2.5 per cent because of imbalance in demand," said Mr Shahari.

"We can expand coverage by working with other airlines and enter new markets without incurring extra cost," he said.

Mr Shahari also said that MASkargo was in talks with Air Uzbekistan to expand coverage of both airlines, with the deal expected to be signed in Uzbekistan's capital Tashkent by the end of the year.

Under the proposed partnership, MASkargo would transport Air Uzbekistan's cargo to European and Asian countries, while Air Uzbekistan would transport MASkargo's cargo to Commonwealth of Independent States (CIS) countries.

"The CIS has never been a market for us, but with this agreement we can transport the cargo to Tashkent and fly to destinations within the CIS," Mr Shahari said.

MASkargo will also be taking advantage of further liberalisation in the Asian region. "Growth in the intra-Asian region will be around 6-7 per cent, so that is where we can make money."