DANAVEST

TRANSMILE Group Bhd’s main cargo operations will move out of the Sultan Abdul Aziz Shah Airport in Subang Jaya, Selangor, by 2012 to make way for the area’s development as part of the Malaysia International Aerospace Centre (MIAC).

“Four years is adequate for us to either lease or have a new building, and develop a more efficient building,” Transmile group managing director Liu Tai Shin said at a briefing in Subang yesterday.

Malaysia Airports Holdings Bhd, the custodian of the MIAC project, gave Transmile until 2012 to relocate to another facility.

On the company’s performance for the second quarter of its financial year, Liu said despite posting losses yet again, it was now in a better position to manage itself.

He, however, refused to give a timeline to when the group would be able to make profits again.

“A timeline (for profitability) is fine if we are in control of every variable, but we are not, so we will focus on our strategy and build the business to move forward,” Liu.

Transmile reported a net loss of RM20.8 million against RM49.7 million revenue for the financial period ended June 30 2008.

For the corresponding quarter in 2007, Transmile made a net loss of RM32.9 million on the back of RM149.9 million revenue.

“By focusing on customised air cargo services, we have managed to chart a much better net margin this year. Despite lower revenue, its quality is now much better because of higher yield per kg shipped,” Transmile chief operating officer Robert John Hyslop said.

The lower revenue was attributed to the grounding of its four MD11s, the largest aircraft in its fleet. Plans are under way to sell the four aircraft.

Transmile has another nine 727s and three 737s in its fleet.

While the group has decided to drop its unprofitable transpacific route, Liu said it may serve new regional routes and form new business partners.

Transmile is also still trying to resolve its problems in servicing the RM536.3 million worth of loans it owes to three groups of lenders.

On the possibility of Pos Malaysia Bhd not renewing its contract with Transmile once its contract expires, Liu said the group would deploy its plane to other air express companies.

Pos Malaysia jobs contribute 10 per cent to the group’s revenue.

Meanwhile, on the group’s decision to make CEN Sdn Bhd a subsidiary, Liu said the move was made to take control of the operations of the company.

Source: Business Times Online