The affected routes are:

• Kuala Lumpur – Surabaya (B737) from January 6, 2012

• Kuala Lumpur – Dubai (A330) from January 10, 2012

• Kuala Lumpur – Karachi – Dubai (A330) from January 12, 2012

• Kuala Lumpur – Dubai – Damman (A330) from January 13, 2012

• Langkawi – Penang – Singapore (B737) from January 30, 2012

• Kuala Lumpur – Johannesburg (B777) from January 31, 2012

• Kuala Lumpur – Cape Town – Buenos Aires (B747) from February 1, 2012

• Kuala Lumpur – Rome (B777) from February 2, 2012

MAS’ group chief executive officer Ahmad Jauhari Yahya (pictured left) said the withdrawal (of the routes) was based on the company’s own independent internal profitability and yield analysis.

“This accounts for almost 12% of our passenger capacity and we estimate that the ongoing route rationalisation will improve loads, increase yields and have a profit impact of RM220-302 million for 2012.”

He added the route rationalisation would have minimal impact on Malaysia’s position as a top tourist destination in Asia as the national carrier would work aggressively with our code share partners.

“Through our existing arrangements with them, we will continue to promote connectivity between Malaysia and key international destinations as well as contribute towards the overall efforts by the various authorities to increase tourist arrivals to Malaysia. We also hope to return to these markets after we have stabilised our business.”

MAS’ two-pronged strategy in its turnaround plan, through a series of cost saving and productivity measures for next year, is expected to generate savings of between RM1.2 billion and RM1.5 billion, and lead it “back to black” by 2013.

Analysts, however, were sceptical of the airline’s latest restructuring strategies, noting that MAS had yet to address operational and structural issues.

Some likened the new plan to “wine in old bottle” due to its similarities to previous turnaround exercises such as the Widespread Asset Unbundling (WAU) restructuring exercise in 2002 and the Business Turnaround Plan 1 (BTP1) in 2006, both of which involved cutting unprofitable routes and spinning off assets.

Meanwhile, the airline expresses its regrets for the inconvenience to passengers as a result of these changes and assures that it will honour all forward bookings ticketed to date on the affected routes.

“The company will make alternative carrier arrangements, at its own cost, to ensure minimum discomfort to passengers,” it said.

• Photos courtesy of Malaysia Airlines