KUALA LUMPUR, Oct 6 (Bernama) -- The implementation of the Business Transformation Plan initiated by former chief executive officer of Malaysia Airlines (MAS), Datuk Seri Idris Jala, is expected to be continued, says ECMLibra Investment Research.

The plan will play a role in positioning the airline as a value five-star carrier in order to compete in a highly competitive environment, ECMLibra said in a note released here Tuesday.

It said MAS'new dual pricing strategy has also seen some degree of success.

Citing the performance of its Europe to Asean sector in the third quarter of this year, it said the company has managed to perform better than its peers with a lower year-on-year revenue contraction.

MAS also recorded a flat year-on-year passenger growth instead of contraction and higher quarter-on-quarter revenue yield.

"So far, forward bookings (for the fourth quarter) seem to be holding up well as compared to the same period last year but yield will continue to be lower due to aggressive fare cutting within the country," it said.

MAS, it said will also continue to adopt competitive fuel hedging despite the adverse effect its current hedges have on the company's financial position.

"On business development, MAS Aerospace Engineering is setting an ambitious target to generate RM3 billion revenue by 2013 as it seeks to create critical mass by growing third party revenue to 60 per cent of total revenue," ECMLibra added.

-- BERNAMA