We are facing a crisis in Malaysia Airlines.

In 2007, our plan will focus on improving efficiency and capabilities. In 2008, we will focus on new growth opportunities.

Our poor pricing, rising cost structure, mismatched fleet, weak operational performance, low-intensity performance culture, and social obligations all contributed to our dismal financial performance across most routes we fly.

The government has agreed to give us a free hand in managing the network, and this will mean that we will have full control on determining capacity, frequency and pricing. Managing yields will be a key factor to ensure profitability and it's important for us to be able to manage this.

Should these losses and cash drain continue, MAS would enter a downward spiral from which it would not likely recover.

We recorded a slight reduction in load factor for the quarter but posted an overall increase for the whole financial year.