MAS cancel plans to replace 737-400 -report

[Ahmad Sharilamin 0]

MAS cancel plan tu replace 737

 

Malaysia Airlines may cancel plans to replace Boeing 737 aircraft - report

 

MAS is really short of cash.....

 

KUALA LUMPUR (AFX) - Malaysia Airlines (MAS) may cancel its Boeing 737 aircraft replacement program as the national carrier seeks ways to cut costs, the New Straits Times reported.

 

The newspaper quoted sources as saying that MAS may have to continue using its current fleet of 737s, which industry experts believe will still be airworthy for another 10 years.

 

The airline had earlier this year asked for proposals from Boeing and Airbus. MAS was said to be looking at more than 40 Airbus A320s or Boeing 737-700/800s to replace its 737-400s.

 

The replacement program was aimed at switching to more fuel efficient aircraft.

 

 

[Ahmad Sharilamin 0]

If they do buy new aircraft, it would be much less than 39 aircraft, as they give more domestic routes to AirAsia and reduce aircraft capacity....

 

 

PMB Drops Malaysian Air Fleet Plan; Excess Planes -Source

 

KUALA LUMPUR (Dow Jones)--Penerbangan Malaysia Bhd. has dropped plans to replace 39 single-aisle planes leased to its Malaysian Airline System Bhd. (3786.KU) unit as the carrier has excess aircraft, an industry source said Monday.

 

"There is overcapacity and there are more plans to trim routes," the source told Dow Jones Newswires on condition of anonymity.

 

 

In August, Malaysian Air - fresh from reporting a MYR280.7 million loss - said it was mulling all options including putting off the fleet replacement plan.

 

The 39 Boeing 737 planes the airline operates have capacity of about 140 passengers each, and are about 13 years old on average.

 

"That's pretty old and inefficient in fuel and maintenance terms," said the source, explaining the reason for the initial replacement plan.

 

Earlier, company officials had said a decision on whether PMB would buy Boeing Co. (BA) or Airbus (ABI.YY) planes to replace the 39 aircraft had been expected by this year.

 

The source added that a government-backed plan to parcel out domestic routes between Malaysian Air and low-cost carrier AirAsia Bhd. (5099.KU) could result in less need for the national airline to have 39 single-aisle planes.

 

The planes are used mostly for shorter routes, particularly domestic runs.

 

From Oct. 30, Malaysian Air began restructuring its routes to maximize yields and improve profits.

 

It deferred indefinitely plans to fly to a total of six new Indian and Chinese destinations, citing efforts "to contain its cost growth and improve performance."

Edited November 28, 2005 by Ahmad Sharilamin

[Walter Sim 1]

haih... MH really no money d

 

Hopefully this helps them in a way to get out from the red..

[Ruiz Razy 1]

I don't think that this is a wise move.

 

They should get them replaced , maybe at smaller numbers. It is not logical to see the full service airline with old planes and the low cost competitor with brand new airbuses.

 

After all, if cost is the issue, fuel efficient aircraft is better than those fuel thirsty planes.

 

It may not neccessarily be narrow body, wide body jets such as 787 or A350 could be an attractive alternative.

 

at the end of the day, full service airlines should be better than low cost. i.e. newer planes, wider legroom, better inflight service....etc. Otherwise, they are not a true full service airline.

 

Aircraft manufacturers could assist in purchasing / leasing the aircraft. As what has happenend with Airbus giving Eastern free leases the A300 in the late 1970s/ early 1980s.

[YiHao 0]

if MAS giving more demostic flight to AirAsia, i guess MAS will losing more money...

[Raj 0]

Well, for MH it is better that they cancel or postponed their orders until they can over come the money problem that they are going through... It is better to deal with one problem at once rather than quite a few...And the problem they should be taking care of is finding away to make Profits..

[Gavin Andrew David 6]

if MAS giving more demostic flight to AirAsia, i guess MAS will losing more money...

17557[/snapback]

 

Not really .

 

Whether they have a good load or not , they have to fly , why make this such a burden . they could be running these planes without covering their cost .

 

If they just give AK the domestic routes and concentrate on international routes , they could make more mo ney

[Walter Sim 1]

i agree on that Gavin, perhaps MH domestic flights are reducted to like 1 X per day from the usual 3 X per day. Then let AK take over, the MH presences is for maybe entrepenours, busniess man to travel on.

 

Then the excess 737 can sell and make money

[Ibrahim 0]

MH Go Kargo laaaa... Kargo give a lot of Money to MH.. Convert all the 737 to Frieghter..

 

I think better give domestic to Air Asia.. And MH Conquer the International Routes... That Realy Profitable..

Edited November 28, 2005 by Ibrahim

[Walter Sim 1]

agree, maybe not remove all domestic, keep the cycles low, so that caters much to the premium passengers in the country. the rest convert them sell them and make money.

[Delwin A 0]

They can still retain some routes like KUL-KCH,KUL-BKI etc and drop unprofitable domestic routes like say KUL-IPH

[Adrian M 0]

At least F50 is not going to go anywhere for now hehehehe....

*happy victory dance*

 

I think they supposed to cancel A380 or half of the order...744 and 772 are more than enough for now for handle things. I have no total object of MAS giving some of the routes AK as long as AK change to more disable-friendly crew and services. And carry disabled children down if aerobridge is unavailable. I always seen MAS crews do this and same goes with my brother too. Satisfaction guaranteed.

[Nick R. 0]

Airbus is really gonna be pissed off if MH cancel their orders..good thing?

*sigh* 2005 5 Star Airline. 2006...

[Adrian M 0]

the report is gay based on the4 fact that they mentioned MAS is considering the option of replacing the 734s with A350. that aircraft was conceived not only as a response to the 787 but also to kill the t7 so saying that the 734s should be replaced with that is nuts. 787 might be smaller but how is it going to serve the sarawakian and sabahan routes where most airports can only support the 734. the infrastructure around the country simply does not permit this. after all we're not singapore.

17643[/snapback]

 

Imagine A350 or B777 on BKI-LBU routes. It's unpractical and what most people say "Tenggelam Labuan"

 

[Ibrahim 0]

Imagine A350 or B777 on BKI-LBU routes. It's unpractical and what most people say "Tenggelam Labuan"

17679[/snapback]

 

737-800 I Still Vote For That.. + Winglet Look Realy Cool

[Min Chun 0]

cancel 3 A380.then use the money to replace 734 04 773..

[Jamie H 0]

This is very very sad news indeed, but I suppose its for the best. Let them become financially sound again, then think about fleet renewals.

 

I find it hard not to point out the fact that Air Asia, a 'NO-FRILLS' carrier, will soon begin receiving the fabulous Airbus A320s (which in my opinion provides greater cabin comfort) and yet MAS will be stuck with her ancient 734s.

 

Hai, MAS MAS........when will you ever settle down with your finances?!!

 

[Pieter C. 5]

This is very very sad news indeed, but I suppose its for the best. Let them become financially sound again, then think about fleet renewals.

 

I find it hard not to point out the fact that Air Asia, a 'NO-FRILLS' carrier, will soon begin receiving the fabulous Airbus A320s (which in my opinion provides greater cabin comfort) and yet MAS will be stuck with her ancient 734s.

 

Yep, it's like biting in a sour apple seeing the "national" airline being overtaken by a "LCC", when it comes to equipment on the domestic stretches

 

What will you do if you had a choice between flying "ancient" 737's between KUL-BKI for 700-800 RM or the "brand-new" 320 for half that ticket-price ???

[Tharan G. 0]

since last time MH have poor financial control. They spend their money on too much of unnecesary things. Hopefully the new MD would make things better.

[Isaac 0]

The best way to save MAS now is to privatise it ... sell it to a local tycoon !

[Radzi 2]

The best way to save MAS now is to privatise it ... sell it to a local tycoon !

17802[/snapback]

 

Been there. Done that. And the holes gets deeper.

 

[Ibrahim 0]

The best way to save MAS now is to privatise it ... sell it to a local tycoon !

17802[/snapback]

 

DOn't Cause They Not Love the Airlines... They only Love the Ahmoi in The Airlines Just Kidding laaa.. Maybe It True.

[Walter Sim 1]

basicly, they need to cut cost wisely. Its useless in taking passenger comfort and service to cost cutting, that should be the final resort. Malaysia Airlines would be like other airline if it wasnt for its award winning warmth and charming service.

 

Perhaps, they should dispose unprofitable route, decrease the frequencies and let AK take over the domestic sector slowly. Sell the excess 737, or make them fly regional. Focus more on International sectors, make sure pax get what they want. Fire unnecesary staff, and try to curb corruption [if any].

 

Cut off the commercials as well, MH seem to spend a lot on their TV commercials, but i do admit they are BRILLIANT! One of the best adverts so far in par with Petronas' Merdeka Advert. From this they could save MILLIONS.

 

Hopefully Mr Idris Jala could bring brilliance into the company once he takes over, and save our beloved National Airline.

[Isaac 0]

Been there. Done that. And the holes gets deeper.

17879[/snapback]

You mean Tajudin, captain ? Well, i think i forget something, "not to a minister, though"

 

[Isaac 0]

try to curb corruption [if any].

17906[/snapback]

I'm pretty sure there are many ...