Malaysia Airlines (MAS) is finalising a plan to strengthen its balance sheet to increase its cash reserves and funding capacity.

The national carrier would unveil the plan in 60 days, Deputy Group Chief
Executive Officer Mohammed Rashdan Yusof told a press conference here today.

He said the plan would include debt and equity market options as well as a
possible assets review and disposal of non-core assets.

Khazanah Nasional and Tune Air, MAS' the two largest shareholders, are
supportive of these initiatives.

With the funding plan in place, the group will further progress the
implementation of initiatives outlined in its business plan announced in
December 2011.

On the outlook for 2012, Group Chief Executive Officer Ahmad Jauhari Yahya
said MAS was optimistic of the prospect for short and medium haul operations
especially the key domestic and regional routes.

MAS would relaunch its short-haul operation by June, he said. The outlook for long-haul operations, however, remained challenging specially with the rising fuel cost, he said.

"Our average projection for fuel price this year is US$135 per barrel. Today
it's US$138," he said.

Ahmad Jauhari said the airline was revitalising its fleet and would refocus
as a full service premium carrier.

"With 23 new aircraft to be delivered this year, we're returning 34 aircraft
and retiring all 747 this year. By end of the year, our average fleet age will
be reduced to 7.7 years, the youngest fleet in the region," he said.

On plans for MAS' Engineering unit, Ahmad Jauhari said the group was looking
at many established partners for strategic partnerships including in component
repair and overhaul.

"Our business plan is basically recovery. If we follow the business plan, we
should be able to make it," Ahmad Jauhari said. -- Bernama