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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (1071)	1/18/1998 5:57:00 PM
From: John Hunt	Respond to of 9980

SCMP - One million workers to be expelled scmp.com << A million foreign workers in Thailand are expected to learn today they are being deported to free up jobs for Thai victims of the Southeast Asian financial crisis. A further million in Malaysia could face the same fate. >>

To: John Hunt who wrote (1071)	1/18/1998 6:54:00 PM
From: Thomas Haegin	Respond to of 9980

John, thanks for having an eye on the news out there also: 20 out of 25 planes may be put on hold... My immediate question is: Did MAS need these planes in the first place or were they also ordered under the theme of putting capital to unproductive use and into overcapacity? Maybe the new planes were needed to replace older ones, I don't know. If they were all for adding to capacity, an increase by 25 big-body planes looks like very large leap to for a pretty much regional carrier. I mean, you normally use these planes for long distance. Just rumbling along here. The article says: "Tajudin said the airline had suffered a contraction of 15 to 17 percent in the number of passengers, and that passenger load factors had fallen to below 60 percent from over 70 percent. He said MAS used to fly around 1.3 million passengers a month before the recent financial crisis, but that had now fallen to around one million, with even the Kuala Lumpur to London route suffering." I think it's safe to say that we are still on the downslope towards the bottom of the pit as far as immediate economic consequences for the airlines are concerned: MAS, Phillies Airlines and Quantas are scaling back so far. Maybe we should keep an eye out for when these planes will be delivered. Thomas