CRUISING ... 2000 and beyond
By the turn of the new millennium, MASkargo was well established as a major
player in air freight and over the next few years it was to enhance its standing to become one of Asia's top three cargo carriers.
Yet the decade started out ominously. Just as MASkargo was pulling out of a
mini-slump from the previous decade's Asian Financial Crisis, September 11
threatened to shoot down the cargo carrier's recovery.
Fortunately, the effects were short-lived and by early 2002, the volume for cargo uplift had returned to pre-9/11 levels.
By this time, MASkargo was beginning to lean towards negotiating separate
traffic rights independent of MAS to allow its air cargo operation to grow on its own.
Cargo charters and full freighter services then accounted for 40% of total
MASkargo uplift, with the rest in the belly space of MAS passenger flights.
To stay ahead in a competitive environment, MASkargo aggressively marketed
its operations and launched a series of innovative services over the next few
years.
First, the cargo carrier introduced an e-booking service, then real-time
information and tracking of cargo consignments through its website, and later, a
host of e-commerce initiatives.
In 2002, MASkargo also launched a One-Stop Perishables Business Centre
(OSPBC) and set up a Priority Business Centre (PBC) to provide personalized
services to its largest customers.
The same year, MASkargo embarked on sea-land-air transshipment of cargo
under its innovative i-Port concept.
By then, transshipment accounted for 50% of total cargo handled by MASkargo
and was identified as a key growth area, particularly since multinational
manufacturers were increasingly shifting their operations to China.
MASkargo was pushing hard to expand its business to emerging economic giant
China. In late 2002, MAS secured landing rights for 10 new points of entry,
enabling its cargo subsidiary to operate full freighter flights into China.
By 2004, MASkargo was operating up to 10 freighter flights to Shanghai per
week.
In between, the Iraq War in 2003 started a price hike in jet fuel prices, which posed a considerable challenge to all airlines including MASkargo in maintaining their bottom line.
But MASkargo succeeded in pushing its revenue upwards through a combination
of innovative services, increased flight frequency and additional destinations.
Its revenue registered a 25% increase in 2005, partly diluting the effects of the escalating jet fuel prices.
Throughout, cargo was still more profitable than passenger sales - a fact
recognized by MAS, which converted an order for B747-400 passenger aircraft to
the freighter version in 2004.
When the two wide-bodied freighters were delivered in 2006, MASkargo was
operating two B747-400F and five B747-200F.
In March 2006, MASkargo became a global leader in animal shipment by
combining transport with premium animal care with the launch of a first-of-its-kind 6-star animal hotel at KLIA.
It was a distinction that placed MASkargo on a new level of its own.
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