MASkargo may park new freighters for financial gain

Malaysia Airlines (MAS) is looking at possibly parking the two A330-200 freighters due for delivery next year in air cargo arm Malaysia Airlines Cargo’s balance sheet, reported Business Times.

The move would bolster MASkargo's financial situation in the way of tax deductions and other benefits.

"We are looking at that quite closely. Whether it's in MAS or MASkargo, it doesn't matter as, operationally, it's exactly the same. It's more a financial standpoint. At the moment, we haven't finalised, but there is a possibility," MAS managing director and chief executive officer Azmil Zahruddin said.

One of the main hurdles to such an arrangement would be to secure financiers for the two planes should they be taken over by MASkargo.

"Financiers are used to financing MAS. So if you talk about MASkargo, they'll go like, 'Who's that?'. So that's some of the hurdles there," Azmil said.

The freighters are scheduled to be delivered towards the end of next year.

"We haven't finalised the financing process for those yet. So it (the decision on balance sheet to include the freighters) will happen before their financing is called," Tengku Azmil added.
MAS also has an option to take on another two A330-200F under its agreement with Airbus.

A decision on the option will have to be made by August next year.

Tengku Azmil said the long-term outlook for cargo in Asia is good, adding that he expects increasing cargo flows within Asia and between Asia and other points in Europe, the US, Australia and Africa.

"We do see cargo as a good market to be in and, in a sense, buying the aircraft is our commitment to the business."
MASkargo provides freighter services to Penang, Dubai, Basel, Amsterdam, Frankfurt, Shanghai, Taipei, Osaka, Hong Kong, Sydney, Melbourne, Malpensa and Guangzhou.

It owns two Boeing 747-400F and leases four Boeing 747-200 freighter aircraft. It also offers passenger belly space capacity, through parent MAS, to over 100 destinations.
(Source:www.cargonewsasia.com)