Things looking up

More words of confident from Transmile. Lets hope there will back to previous glory real soon even though its not going to be an easy task.


Things looking up - by Presenna Nambiar, Business Times.

FINANCIALLY troubled Transmile Group Bhd (7000) may be on the brink of being taken off the stock exchange or worse, be wound up, but for its management, things are finally looking up.

"We have been standing alone for three years ... against all odds, we are standing here today, and we continue to plan to move forward and plan to grow.

"(With the sale of the MD-11s) we have something positive to hold on to ... we'll still take some time ... let's be realistic, it won't be done overnight," Transmile Group Bhd group managing director Liu Tai Shin told selected media in Subang last week.

With the disposal of the four non-revenue-generating MD-11s, Transmile has a fleet of 12 freighter planes, nine Boeing 727s and three Boeing 737s.

Two of its aircraft have been leased out to its Thailand associate K-Mile Air, while the remaining will service its charter and scheduled flights.

"We have a balanced mix of revenue between what we do in leasing and charter and in scheduled cargo for the general public ... which I think is important in this business. Things change very fast, so you need a good balance spread of revenue," Transmile group chief operating officer Robert Hyslop explained.

Last year, Transmile introduced three cargo services a week from Subang to Kuching, Labuan and Bintulu via Changi, Singapore, designed to develop customers in the oil and gas industry, and increased the frequency to its Subang to Hong Kong route.

This year, it plans to introduce Subang-Ho Chi Minh City route, which will carry a mix of oil and gas, and general cargo.

The cargo carrier's main revenue earner is still its courier, air express and postal business.

It services clients such as Air Hong Kong, DHL and Gading Sari Aviation, which is part of the Pos Malaysia contract, and general freight forwarders.

For the first nine months of the financial year ended December 31 2010, the company recorded a net loss of RM130.1 million due to an impairment loss of RM143.8 million for the MD-11s recognised in the third quarter of the year.