MAS weighs new plane options

[flee 5]

BERLIN: Malaysia Airlines (MAS) (3786) is considering an additional aircraft type for its new fleet plan, either the A350, B787 Dreamliner or Boeing's latest B777 variant, B777-300.

 

Currently, the national carrier has on order six A380-800s, 15 A330-300s, and 35 B737-800s.

 

The fleet leaves a significant gap of seat counts between the A330 and the A380 superjumbo, for the medium to long haul market.

 

The A330 has about 280 seats, while the A380 has about 500 seats.

 

"We are looking at an aircraft type that fits between the two. At the end of it all, we are looking at about three to four aircraft types," MAS chief executive officer and managing director Tengku Datuk Azmil Zahruddin told reporters here on Wednesday.

 

However, it is not a matter of urgency, said Azmil. The airline will only start looking at it in detail by the end of the year.

 

Of more immediate concern is the airline's need to lease another three B737-800 to meet capacity demand on its medium-haul routes.

 

"We are having a bit of trouble leasing the other three aircraft, but we should get it sorted out in the third quarter of the year," Tengku Azmil said.

 

MAS already has three B737-800s on lease.

 

The airline, in an effort to lock in its financing costs early, has also issued out request for financing proposals to cover its deliveries until 2012.

 

"Proposals have come back, we are in the short listing process. We will finalise it within the next two to three months," Tengku Azmil said.

 

MAS will receive 14 B737-800s, eight A330-300s and five A380s by the end of 2012.

 

Tengku Azmil said MAS used the opportunity during the International Air Transport Association annual general meeting in Berlin to meet up with financiers and leasing companies for the aircraft that it wants to lease.

 

He expects fairly flat growth this year, with yields still under pressure, despite passenger traffic returning.

 

The year 2011, however, is expected to chart positive growth, with an increase in frequency and number of destinations that it flies to.

 

Source:

http://www.btimes.com.my/Current_News/BTIMES/articles/pmas/Article/index_html

[Mohd Azizul Ramli 2]

Related news.

 

MAS to fly youngest fleet

By WONG SAI WAN

saiwan@thestar.com.my

http://biz.thestar.com.my/news/story.asp?file=/2010/6/12/business/6453187&sec=business

 

 

FOR the past five years, the story of Malaysia Airlines has largely been about turning in better profits and coming out with an effective business plan. These days, that is no longer the case. In fact, the airline is on an expansion path both in terms of raising frequency of flights to existing routes as well as offering new routes.

 

This growth phase, which comes on the back of its two business turnaround plans and two global economic crises, will be powered by 56 new aircraft that will change the capacity as well as the range of the airline.

 

MAS chief executive office and managing director Tengku Azmil Zaharuddin, speaking on the sidelines of the International Air Transport Association AGM in Berlin, says the new aircraft are from firm orders of three type of aircraft including the delayed A380 (six units).

 

 

The other two are the new generation Boeing 737-800 (35 units) and the new variant Airbus A330-300 (15 units). This will bring the total number of aircraft in MAS’ fleet to over 100 and not include the option of 20 B737-800 and 10 A330-300 that it could exercise in the next five years. By 2015, the MAS fleet will total more than 110 aircraft excluding the options to obtain more.

 

“This year will mark the start of our growth programme that will be facilitated by the arrival of all the new aircraft over the next five years. By then, we will have the youngest fleet in the region if not the world. The average age of our planes would be 5.2 years compared to 11.6 years at present,” he adds.

 

Having a younger fleet, says Azmil, has several advantages – it’s operationally more efficient as new aircraft are built to handle faster turnaround and more frequency; more cost effective as MAS, for the first time, is buying the bulk of its fleet at one go, allowing for longer planning period; better fuel efficiency as the new generation aircraft from the A380 to the B737-800 are reported to be relatively more fuel efficient by 25%-40%; and cost less to maintain as they are within the warranty period and tend to break down less.

 

In addition, the purchase of the B737-800 has added another dimension to the MAS fleet which will have a much longer range by some 1,400km or a total range of over 5,600km “flying on a full tank.” The 737-800 seats 162 passengers in a two-class layout, or 189 in one class, and competes with the A320.

 

“With the longer range, our 737 new generation single-aisle jet can take over the role that we now assign to our A330-300s.

 

“North Asia – China, the Korean peninsula, Japan and India – can now be served by a narrow body aircraft. This means we can look at new routes in these destinations as previously we had to use a bigger A330 to serve them,” says the MAS boss.

 

It is not easy to fill up a wide-body A330-300, which carries about 250 passengers, but the B737-800 will make it more attractive for MAS to explore new routes.

 

Azmil admits that the B737-800 makes destinations like Xian, Dakka, Cheju Island and every city in Japan a possibility.

 

“We will first relook all the destinations which we have rights to but have either given up or never flew to and then move towards other places. But I must admit, China and India look very attractive with the new generation 737s.

 

“It does not matter if the traffic is seasonal or if it picks up suddenly as the new generation aircraft allows us to increase the frequency. We can fly two or even three times a day to a new destination if traffic volume justifies it. Having such a schedule may be an attraction in itself to travellers,” he adds.

 

The new generation A330-300 is a longer version of the present models and are made up of modern material, hence they are lighter and more fuel efficient. These aircraft, like the B737-800, also have longer range.

 

“The new A330-300 will replace the way we use of B777 now. It can serve North Africa, the Middle East, whole of Asia and Australia. With about 250 passengers, we will be able to mount more frequency and be able to turn it around faster,” he says.

 

As for the A380, MAS will use it like all its regional counterparts. The giant in the sky will be for non-stop long haul routes with high traffic. With a capacity of 500 travellers, there are only so many destinations MAS can fly with the A380 but it ultimately depends on how the airline configures the aircraft.

 

Azmil also reveals that MAS is looking to introduce the premium economy class on all its aircraft to attract economy-class travellers looking for improved comfort.

 

“We also want to attract those who had ‘downgraded’ themselves from business class to economy.”

 

Will the national carrier own all the aircraft? No, says Azmil. “We will not own all the planes. We are looking at the one-third, two-third policy – either own two-third of the new aircraft and lease one-third or vice versa.

 

“PMB (Penerbangan Malaysia Bhd) will have the first right of refusal for to the lessor but we have others waiting in the wings. The exact formula will depend on the various economic situation,” he adds.

 

Based on 2008 price catalogues for aircraft, a new A330-300 can cost between US$195.9mil and US$205.7mil while a B737-300 would cost in the range of US$72.5mil to US$81mil. Meanwhile, an A380 costs between US$317mil and US$337.5mil but it could cost MAS a lot less given the delayed compensation.

[Josh T 0]

I suppose MH can keep their newest B747-400s to fill that capacity gap between the A330-300 and A380-800.

 

By the way, can the new A330-300s fly non-stop between KL and European destinations like Paris and Rome?

And I wonder which aircraft will be used to serve LAX in the future...

[flee 5]

I suspect that when the new A333's arrive, MH will only use them for Asia/Middle East/Australia routes. The B772s will be deployed on their European routes.

[jani 0]

If I'm not mistaken, no, the A330 cannot fly KUL-Europe. Same reason Garuda has to stop in Dubai for their Amsterdam route.

[Gavin Andrew David 6]

I believe there's a new 330 in the works that can go the distance right ?

[fenandri 3]

Related news.

so the new A330 will have 250 seat., compare to SQ with 280 seats, there is possibily MH will have flat bed seats. like etihad A330

Edited June 12, 2010 by fenandri

[Josh T 0]

Really though, MH have to use flat bed seats in their new aircraft for business class, especially when there is no first class product (except on the A380) anymore. This will help them go 1-up on SQ and also against AK (now that they're also introducing lie-flat seats).

[Cheng Long 0]

Their 777s are starting to show its age. Hope they will order replacement soon, otherwise the same problem will repeat itself where they frantically need to replace their current A330..

Edited June 12, 2010 by Cheng Long

[Josh T 0]

If I'm not mistaken, no, the A330 cannot fly KUL-Europe. Same reason Garuda has to stop in Dubai for their Amsterdam route.

Thanks for clarifying that. So, it looks like the A380 for LHR and AMS and the B777 for CDG, FRA and ROM.

 

It would make sense to keep the B777 and/or directly replace them with the B777-300 for greater capacity.

[flee 5]

Their 777s are starting to show its age. Hope they will order replacement soon, otherwise the same problem will repeat itself where they frantically need to replace their current A330..

The MH CEO said that they will only look into it at the end of the year. I think that this probably means that they might go for the B77x to replace their older B772s and B744s if they want the new aircraft quickly.

 

B787s and A350s will be longer term decisions because of the long queues for delivery slots.

 

I believe there's a new 330 in the works that can go the distance right ?

 

I don't think it would be technically difficult for Airbus to install extra centre fuel tanks on the A333. However, I think that the total payload will be reduced and that may totally change the economics of operating the aircraft. So it may not be economically feasible.

Edited June 12, 2010 by flee

[Josh T 0]

How old are MH's newest B777s?

[flee 5]

9M-MRQ was delivered on 13-12-2004.

[Josh T 0]

9M-MRQ was delivered on 13-12-2004.

Thanks for that. So, only 5.5 year's old. How many of their B777s are less than 7 year's old?

[Johan Z 0]

Thanks for that. So, only 5.5 year's old. How many of their B777s are less than 7 year's old?

 

Here you are, link. I hope this is accurate. According to this, only 2 actually less than 7 years old. They can keep 777 delivered in 2000's for European routes.

[KK Lee 5]

Thanks for clarifying that. So, it looks like the A380 for LHR and AMS and the B777 for CDG, FRA and ROM.

 

It would make sense to keep the B777 and/or directly replace them with the B777-300 for greater capacity.

 

Guess this is a statement from a MH insider

 

Talking about significant gap of seat count, what about between 734 and A333, ATR and 734? Believe MH need two additional aircraft type to optimize fleet utilization.

 

[Radzi 2]

 

By the way, can the new A330-300s fly non-stop between KL and European destinations like Paris and Rome?

 

 

MH new A330 will have center tanks, so they can fly long distance.

 

MH new A33o will not have crew bunks, so they will need robots to fly long distance.

 

At least that is the info that I gather from various sources.

[Josh T 0]

Guess this is a statement from a MH insider

I am not an MH insider. Really. I wish I was!

[flee 5]

Talking about significant gap of seat count, what about between 734 and A333, ATR and 734? Believe MH need two additional aircraft type to optimize fleet utilization.

 

I am not sure if MH wants to have too many aircraft types. The B738 will be their short-medium haul workhorse while the A333 will take on flights that are up to about 9 or 10 hours. MH sees frequency as more important than capacity. The long haul flights will be handled by B744/B772/A380. If I remember correctly they did mention that they want to operate only 3 or 4 aircraft types as operating too many types will increase costs (no economies of scale; spare parts inventories problematic).

[KK Lee 5]

I am not sure if MH wants to have too many aircraft types. The B738 will be their short-medium haul workhorse while the A333 will take on flights that are up to about 9 or 10 hours. MH sees frequency as more important than capacity. The long haul flights will be handled by B744/B772/A380. If I remember correctly they did mention that they want to operate only 3 or 4 aircraft types as operating too many types will increase costs (no economies of scale; spare parts inventories problematic).

 

MH won’t install crew bunk on A33E means will be limited to 8 hours flight time.

 

MH couldn’t offer daily flight to many medium (e.g. MLE) and long haul (e.g. FRA) because A333 and 772 is too large. If frequency is more important than capacity, MH should consider 787 class to compliment A33E, 772 and A380.

 

MH business model is not LCC and need not restricted to 3 or 4 aircraft type. Successful business model like LH, KL, AF, etc have numerous aircraft types to optimize fleet utilization i.e. maximize yield. If economy of scale is considered, MH should have ordered A320 instead of 738 so that pilots are type rated for both A320 and A33E. If common spare part is vital, why A33E engine selection is not announced by now?

 

[flee 5]

MH couldn’t offer daily flight to many medium (e.g. MLE) and long haul (e.g. FRA) because A333 and 772 is too large. If frequency is more important than capacity, MH should consider 787 class to compliment A33E, 772 and A380.

 

MH business model is not LCC and need not restricted to 3 or 4 aircraft type. Successful business model like LH, KL, AF, etc have numerous aircraft types to optimize fleet utilization i.e. maximize yield. If economy of scale is considered, MH should have ordered A320 instead of 738 so that pilots are type rated for both A320 and A33E. If common spare part is vital, why A33E engine selection is not announced by now?

 

The question here is whether MH can justify maintaining so many types of aircraft just to provide a service. They have to do a cost vs benefit exercise. MH is a listed company and analysts pour over their financial results with a fine comb.

 

Although MH is not an LCC, its fleet is comparatively small, at 90+ aircraft. In comparison, LH has 260+ aircraft, AF/KLM has 370+ aircraft. They will definitely have better economies of scale. They can even afford to operate both 737 and A320 families since their fleet is huge.

 

MH is a small airline with a limited route network. Why does it need so many types of aircraft unless it is expanding into new markets with special requirements?

[Josh T 0]

It makes sense for MH to only have 3 or 4 aircraft types. I suppose they're not so concerned by capacity gaps between the aircraft but it's more the range capabilities because there's definitely a gap between the range of the A33E and the A380. I believe they'll replace the current B777-200 with the B777-300 and they'll only need enough to cover flights to Frankfurt, Paris, Rome and Los Angeles because the A33E will take over current B777 flights to Tokyo, Perth, Adelaide, Melbourne, Brisbane, Sydney and Auckland.

[Johan Z 0]

Instead of 777-300 they can go for the -ER. More capable and selling like hotcakes nowadays. I can see that more as 747/777 replacement for AMS, MEL, JNB (EZE,CPT) and SYD. They certainly need ~300 seating capacity (in 2-class config.) for the European routes, which A350-900 or 787-9/-10 can fill. If they happen to order 77W and A350-900/787, that will make 5 types of aircraft, which is not that bad.

[KK Lee 5]

It makes sense for MH to only have 3 or 4 aircraft types. I suppose they're not so concerned by capacity gaps between the aircraft but it's more the range capabilities because there's definitely a gap between the range of the A33E and the A380. I believe they'll replace the current B777-200 with the B777-300 and they'll only need enough to cover flights to Frankfurt, Paris, Rome and Los Angeles because the A33E will take over current B777 flights to Tokyo, Perth, Adelaide, Melbourne, Brisbane, Sydney and Auckland.

 

MH doesn’t have enough load for daily 772 service to FRA, etc. If MH to purchase 77W means MH is contented with low yield and doesn’t intend to provide daily service to FRA, etc

 

If MH to operate one daily A380 service between KUL and LHR/AMS could means MH A380 and 772 aircraft utilization rate will be relatively low.

 

Edited June 13, 2010 by KK Lee

[KK Lee 5]

The question here is whether MH can justify maintaining so many types of aircraft just to provide a service. They have to do a cost vs benefit exercise. MH is a listed company and analysts pour over their financial results with a fine comb.

 

Although MH is not an LCC, its fleet is comparatively small, at 90+ aircraft. In comparison, LH has 260+ aircraft, AF/KLM has 370+ aircraft. They will definitely have better economies of scale. They can even afford to operate both 737 and A320 families since their fleet is huge.

 

MH is a small airline with a limited route network. Why does it need so many types of aircraft unless it is expanding into new markets with special requirements?

 

It is a fact that;

1. MH doesn’t have enough load for daily 772 service to FRA, CDG, JNB, etc.

2. Those routes (e.g. SYD, MEL, NRT, ICN, etc) that justify daily 772 will be covered by A33E

3. Frequency means high yield.

 

For MH to improve yield, MH should replace 772 with smaller aircraft like 787.