Transmile ... May 09

TRANSMILE GROUP recorded slightly lower losses for 1QE Mar 2009 with a Net Loss of RM43.8m, compared with Net Losses of RM47.8m a year earlier and RM26m in 4Q08.

Revenue fell 70% to RM35.5m from RM119.4m a year earlier. The lower revenue was mainly due to lower flight hours as a consequence of the cessation of the unprofitable routes flown by the MD11 aircraft since the end of Mar 2008 said the Company inn EXCHANGE filing on Apr 23, 2009 which also resulted in lower losses in 1QE Mar 2009.

UNREALISED FOREX LOSS OF RM20.4M
" .... Included in the loss for the quarter under review is an unrealised forex loss of RM20.4m on USD loans which were recognised following changes in the functional currency for accounting purposes ...." said the filing.

Without the Unrealised Forex Loss, the Group's Net Loss would be at about RM23.4m.

DEPRECIATION COSTS
The company also explained that Depreciation and other costs relating to the wide-body aircraft amounted to RM14.2m for 1QE Mar 2009.

NARROW BODY OPERATIONS PROFITABLE
The Company also said that " .... The narrow-body operations and other ancillary services provided are profitable and the Group is constantly looking for new business opportunities to enhance its revenue stream and improve profitability ...." adding that it was also looking at ways to reduce operating cost and improving productivity.

PROSPECTS
TRANSMILE also said that it was exploring new businesses with existing and potential clients. The Company was also looking at new regional routes.

BORROWINGS REMAIN HIGH
In the Company's EXCHANGE filing, Short-Term Borrowings were high at RM592.9m as at Mar 31, 2009.

SALE OF WIDE-BODIED AIRCRAFT YET TO OCCUR
The Company in the aftermath of its accounting crisis had announced plans to sell at least one unit of its four MD-11 wide-bodied aircraft by end of 2008. This has not occurred.

The disposal of its four MD11 aircraft estimated to be worth RM590m in Aug 2008 was part of the Carrier's plan to repay its large borrowings and defaulted repayments. Aviation analysts said that prices of aircraft had dropped since then.