Malaysia Airlines records 23% direct operating cost margin after Amadeus collaboration

Malaysia Airlines records 23% direct operating cost margin after Amadeus collaboration
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KUALA LUMPUR (Aug 9): Malaysia Airlines Bhd (MAB) recorded a 23% direct operating cost margin in early 2021 in its domestic operations since using Amadeus’ revenue management control systems, despite the impact from the ongoing pandemic.

The national airline has collaborated with the travel technology company since 2020 to increase its technology and retailing capabilities in order to enhance customer experience and capitalise on revenue opportunities.

“The year 2020 was a challenging year, but we achieved an increase of 14% in yield in these unprecedented times with predominantly domestic operations.

“We focused on an effective revenue and sales initiative that helped us drive stronger direct operating cost (DOC) margins in the domestic operations, resulting in a 23% DOC margin, which is an improvement over our 2019 strong performance, indicating capacity deployment are being utilised effectively with revenue and cost initiatives,” MAB global head of revenue management Dersenish Aresandiran said in a statement.

He said this indicated the revenue management transformation the company has been working on with Amadeus is performing well.

MAB partners with Amadeus to deploy effective revenue management controls which lead to a significant improvement in profit margins.

Meanwhile, Amadeus business consulting director for Asia Pacific Suraj Mohamed said it is critical for the travel industry to adapt and prepare for any business scenario.

“We see that travelers’ needs are changing – how they choose, and purchase products and services, and how companies interact with them have changed over the course of the pandemic as a result.

“We are really pleased to be helping Malaysia Airlines in its revenue and business transformation journey, and together with the airline, work towards rebuilding travel in the Asia Pacific.”