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MAS Joins oneworld!

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I would have thought that it would be simpler to code share on MH's direct flights, e.g. LHR-KUL or SYD-KUL?

 

I think there is another aspect to code sharing - some pax might use code shares to get lower fares. E.g. BMI code shares with MH on the LHR-KUL flights. Their fares are almost always lower than booking directly with MH. So there are pax who really want to fly with MH but book with BMI because they offer the lowest fares.

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I would have thought that it would be simpler to code share on MH's direct flights, e.g. LHR-KUL or SYD-KUL?

 

If you look at QF's codesharing strategy, I think that is what they intend to do. They love their codeshares.

 

I also think that they might also align their schedules better at SIN with MH's. Currently pax from MEL/SYD (not sure about other ports) flying QF arrive too late for any MH services up to KUL.

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You might just see the present BA015/BA016 service routed via KUL instead of SIN.. at present, BA015 and BA011 Both ex-LHR arrive in SIN within one hour - with BA015 on a quick transit to SYD. Plus, the gap in service to SYD ex-KUL with only MAS serving the route - who knows - this could have been the actual reason why the Govt has been procrastinating on the decision to permit D7 on the route..

 

BA has in the past announced it was considering scaling back operations into SIN (particulalry during the lean years). The service into KL would also permit connecting passengers with MH schedule on to other Australian destinations such as PER/MEL/ADL or even AKL & even South East Asian destinations like DPS/CGK/MNL etc.

 

Hence,

BA011/012 LHR-SIN (Option for passengers to transit onto QF for flights to AU) (B744 and in the future i'd imagine the A380)

BA015/016 LHR-KUL-SYD (Option for passengers to transit onto MH flights to AU/SEA) (B777 and possibly upgrade to B744/A380)

 

As per QF - I think they may consider mounting a service between PER-KUL for connections to SEA/North Asia/European destinations such as FCO/AMS/FRA & since they have recently announced the termination of PER-NRT. Possibility of even an ADL-KUL service on the days not operated by MH to combine for a daily service.

 

Lots of prospects & exciting times. Either way. Expect to see the Kangaroo and the Union Jack back on Malaysian soil - at first in a limited presence.

 

Hope that MAHB also wakes up and realises that they better invest in the KLIA MTB/SAT A facilities to maintain on par or better services with SIN. I think I smell SAT B..

Edited by Sandeep G

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You might just see the present BA015/BA016 service routed via KUL instead of SIN.. at present, BA015 and BA011 Both ex-LHR arrive in SIN within one hour - with BA015 on a quick transit to SYD. Plus, the gap in service to SYD ex-KUL with only MAS serving the route - who knows - this could have been the actual reason why the Govt has been procrastinating on the decision to permit D7 on the route..

 

Sometime last year I came across rumours that BA15/16 will be re-routed LHR-KUL-MEL. There are also parallel rumours that BA15/16 and BA9/10 will both terminate and turnaround in SIN/BKK, which would mean BA leaving Australia entirely, transferring all Australian bound pax to QF. I am not sure how credible these rumours are. But in light of MH joining OW, I think BA15/16 going LHR-KUL-Australia has more credence. However I'm not convinced that they're going to re-route the service to MEL (which has a history of poor yields for BA).

 

Rumours about BA ceasing to serve Australia altogether have been around for a long time. It's not the most efficient of services for them yieldwise, and they're seen as serving Australia for historical and prestige reasons. An alliance partner in MH might be just the trigger for BA's exit from Australia - this could mean a LHR-KUL-LHR service, along with BA passing its Australia bound pax to its alliance partners at KUL/SIN/BKK.

 

I think QF and BA will still maintain their SIN hub operations, as there's a lot of O/D traffic with SIN especially at the pointy end. But I can see either of them, more likely BA, re-starting KUL services to optimise their new alliance partner.

Edited by Keith T

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However I'm not convinced that they're going to re-route the service to MEL (which has a history of poor yields for BA)

.

I think KUL-MEL has seen tremendous growth also due to the presence of D7/EK in addition to MH, with EK having 5th freedom ex-KUL. Another player (in the form of BA/QF) would not be mutually beneficial to MH/Oneworld. However, the expansive gap in services between SYD/KUL in particular between alliance partners of Oneworld could see fruition in profits.

 

Rumours about BA ceasing to serve Australia altogether have been around for a long time. It's not the most efficient of services for them yieldwise, and they're seen as serving Australia for historical and prestige reasons. An alliance partner in MH might be just the trigger for BA's exit from Australia - this could mean a LHR-KUL-LHR service, along with BA passing its Australia bound pax to its alliance partners at KUL/SIN/BKK.

They may just see an improvement in yields if they operate via KUL to SYD as fifth-freedom ex-KUL would potentially see a rise in O/D traffic between SYD-KUL. Many Malaysians are still heading down to SIN before hopping on QF/BA to LHR/AU. It is important thus, for BA/QF to mount services to KUL for MH (& KUL) to see a benefit from the partnership.

 

I think QF and BA will still maintain their SIN hub operations, as there's a lot of O/D traffic with SIN especially at the pointy end. But I can see either of them, more likely BA, re-starting KUL services to optimise their new alliance partner.

The good news is, recent statistics (look for MAR's analysis on this forum) and data show MH front-end yield has increased and they are focusing again on filling the front-end with not just corporate travellers but with wealthy leisure travellers as well. So hopefully, the demand for premium traffic ex-KUL will see a rise in the future. In addition, not that you've said it at all Keith, but the general perception that KUL is NOT a business destination is highly dubious - the problem is that this region, particularly Singapore/Malaysia & Thailand are important regional economic houses - and most corporate travellers ex-EU/US/AU will combine their corporate travels in one go - hence why BKK/SIN have become traditional entry points into the region with the Airline Alliances. Hopefully, with this entry, MAS may now reap the benefits of being the origin of Business traffic in the region with people coming to KUL first before heading to SIN/BKK.

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I think that explains the reason why the govt. has held up D7's approval on the KUL-SYD route. It will hurt MH badly if it opens up the route before the real free for all happens. If the route is now open, D7 will have a tougher time making an impact as MH will have stronger partnerships on this route.

 

Having said that, D7 has always worked with the local tourist and airport authorities in Australia to drum up a market for themselves. It will be interesting to see how the KUL-SYD market will play out with oneworld now brought into the picture.

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They may just see an improvement in yields if they operate via KUL to SYD as fifth-freedom ex-KUL would potentially see a rise in O/D traffic between SYD-KUL. Many Malaysians are still heading down to SIN before hopping on QF/BA to LHR/AU. It is important thus, for BA/QF to mount services to KUL for MH (& KUL) to see a benefit from the partnership.

 

Yes I think QF or BA will stand to gain a lot more from their new OW hub in Asia if they commence services to KUL. After all, an alliance is all about synergies of the type you mention. If QF only wanted to codeshare they can already do so without having MH in oneworld (as they're already doing with OZ, BR, VN and a few others). Also anything that keeps BA in Australia would be great. Overall I'm happy to see that OW has another major hub in Asia. KUL is one of my favourite cities alongside HKG. I remember the days when OW only has HKG... how things have changed since! I look forward to flying with MH when they're operating under the OW banner! (or even sooner if QF develops FF links with them in the lead up to formal membership!)

Edited by Keith T

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Qantas to rethink aircraft orders,

says Joyce Steve Creedy, Aviation writer From: The Australian June 07, 2011 12:00AM

 

QANTAS has warned it may review aircraft orders unless it can get a decent return on capital from its loss-making mainline international operations.

Chief executive Alan Joyce said yesterday the airline would not keep spending on the international business until it began returning its cost of capital. "We have to review the capital we are putting into it because the business is not performing, it's clear, and there are other parts of the business that are," Mr Joyce said on the sidelines of the International Air Transport Association annual meeting in Singapore.

 

"They are giving us a better return on the cost of capital -- that's where we should be putting the expenditure, and international is not going to see any more growth until it's turned around."

 

Asked if that meant adjusting aircraft orders, Mr Joyce said: "Everything is on the table." He added that the airline would still take its order of 20 Airbus 380s as planned and it expected that reconfigurations to increase seat density would help improve its international business.

 

Mr Joyce also said the airline would be working with alliance partners American Airlines, LAN Chile and British Airways to improve route structures and boost its productivity as part of negotiations with unions.

 

"That's where our biggest disadvantage comes in a lot of cases; we have poor productivity compared to a lot of airlines," he said.

 

The comments came as the airline announced that it was sponsoring Malaysia Airlines to become a Oneworld Alliance member and intended to forge closer links with the Kuala Lumpur-based carrier as part of its international strategy.

 

Mr Joyce said the airline would continue its separate low-cost operation in Singapore but was keen to talk to Malaysia about co-operation in Malaysian and other Southeast Asian markets.

 

The Qantas chief expressed concern that an International Air Transport Association outlook forecast that more than halved the global industry profit outlook for this year was too bullish because it had not sufficiently accounted for high fuel prices.

 

He said Qantas agreed that oil prices would remain at $US110 and this would affect demand.

 

Mr Joyce said the airline had increased fares a number of times but was still not covering fuel costs, and he believed other airlines were in the same boat.

 

"IATA has shown the impact on demand is related to the impact on economic activity, and if the economic activity suffers you will have a big negative impact on airline profitability," he said.

 

Mr Joyce blamed the threat of industrial action as a possible cause of yesterday's fall in Qantas's share price below $2.

 

Whilst we get excited at MAS joining OneWorld - let's keep the big picture in view. Not all is "peachy" with QANTAS, continued engineering-related incidents/perpetual threat of industrial action/increasing angst toward the Irish CEO from not just the staff, but public as well... hope they can pull through what has indeed been a rough year.

 

On the rationalisation of aircraft orders as mentioned in the article - I wonder if some of those 787's they've ordered may end up with 9M- regos and Wau tails?? Interesting times indeed.

 

Meanwhile, Virgin/SIA partnership leads to a stronger foothold for SQ on Aussie marketshare and opens up again the chance for Trans-Pacific flights.

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Whilst we get excited at MAS joining OneWorld - let's keep the big picture in view. Not all is "peachy" with QANTAS, continued engineering-related incidents/perpetual threat of industrial action/increasing angst toward the Irish CEO from not just the staff, but public as well... hope they can pull through what has indeed been a rough year.

 

Last night's episode of Lateline Business alludes to rifts between Alan Joyce and the Board of QF. IMO, the sooner they get rid of him the better. I might know very little about running an airline but things have really taken a downturn since he took over the airline. Been hearing some questionable maintenance practises at QF, and if true, they're very worrying. I'm sure 99% of these rumours are exaggerated and I won't repeat them here because I can't verify these myself, but you can't help noticing a pattern of engineering issues with QF aircraft which means there's some substance to the rumours. He's waged war on engineers, pilots, cabin crew, and Platinum frequent flyers. How i wish John Borghetti, who made QF such a great airline to fly in the 2000s, became CEO! Alan Joyce doesn't seem to get that the kind of LCC management practises that worked well at JQ do not necessarily apply for a premium airline which requires INVESTMENT in products and services rather than cuts, cuts and more cuts to try to squeeze out a profit!

 

And to trash his own airline in public is madness!

 

/Signed: A bitter but still trying to be loyal QF Platinum

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Stolen from MH's FB wall.

 

249985_10150208045064712_52798899711_6891995_7414348_n.jpg

 

Malaysia Airlines Chairman Tan Sri Dr Mohd Munir Abdul Majid, Qantas Chief Executive Officer Alan Joyce, Malaysia Airlines Managing Director / Chief Executive Officer Tengku Dato’ Sri Azmil Zahruddin and oneworld CEO Bruce Ashby at the signing ceremony this morning.

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Qantas to rethink aircraft orders,

says Joyce Steve Creedy, Aviation writer From: The Australian June 07, 2011 12:00AM

 

QANTAS has warned it may review aircraft orders unless it can get a decent return on capital from its loss-making mainline international operations.

Chief executive Alan Joyce said yesterday the airline would not keep spending on the international business until it began returning its cost of capital. "We have to review the capital we are putting into it because the business is not performing, it's clear, and there are other parts of the business that are," Mr Joyce said on the sidelines of the International Air Transport Association annual meeting in Singapore.

 

"They are giving us a better return on the cost of capital -- that's where we should be putting the expenditure, and international is not going to see any more growth until it's turned around."

 

Asked if that meant adjusting aircraft orders, Mr Joyce said: "Everything is on the table." He added that the airline would still take its order of 20 Airbus 380s as planned and it expected that reconfigurations to increase seat density would help improve its international business.

 

Mr Joyce also said the airline would be working with alliance partners American Airlines, LAN Chile and British Airways to improve route structures and boost its productivity as part of negotiations with unions.

 

"That's where our biggest disadvantage comes in a lot of cases; we have poor productivity compared to a lot of airlines," he said.

 

The comments came as the airline announced that it was sponsoring Malaysia Airlines to become a Oneworld Alliance member and intended to forge closer links with the Kuala Lumpur-based carrier as part of its international strategy.

 

Mr Joyce said the airline would continue its separate low-cost operation in Singapore but was keen to talk to Malaysia about co-operation in Malaysian and other Southeast Asian markets.

 

The Qantas chief expressed concern that an International Air Transport Association outlook forecast that more than halved the global industry profit outlook for this year was too bullish because it had not sufficiently accounted for high fuel prices.

 

He said Qantas agreed that oil prices would remain at $US110 and this would affect demand.

 

Mr Joyce said the airline had increased fares a number of times but was still not covering fuel costs, and he believed other airlines were in the same boat.

 

"IATA has shown the impact on demand is related to the impact on economic activity, and if the economic activity suffers you will have a big negative impact on airline profitability," he said.

 

Mr Joyce blamed the threat of industrial action as a possible cause of yesterday's fall in Qantas's share price below $2.

 

Whilst we get excited at MAS joining OneWorld - let's keep the big picture in view. Not all is "peachy" with QANTAS, continued engineering-related incidents/perpetual threat of industrial action/increasing angst toward the Irish CEO from not just the staff, but public as well... hope they can pull through what has indeed been a rough year.

 

On the rationalisation of aircraft orders as mentioned in the article - I wonder if some of those 787's they've ordered may end up with 9M- regos and Wau tails?? Interesting times indeed.

 

Meanwhile, Virgin/SIA partnership leads to a stronger foothold for SQ on Aussie marketshare and opens up again the chance for Trans-Pacific flights.

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Amidst all the current general euphoria emanating from MH's 1world entry announcement, I probably stand alone in holding reservation on issue for time being (being the pessimist that I am :D )

There is still quite a long period of time before formal admission into the alliance is formalized, also a period for all parties to iron out all the kinks and differences. This I believe is where lies the real challenge, ridding the devil from the details

And even after getting over this hurdle, the challenge will be to establish and maintain a healthy working relationship with the other alliance members, consistently

 

I sincerely hope that this really does signal a genuine turnaround in MH's fortunes

No, more importantly, a turnaround in MH's culture

As opposed to those many 'syiok sendiri' proclamations we've endured in the past

 

Like KC Sim, I'll be happy to be proven wrong on this :D

 

MH is, after all said and done, our flag carrier, with Malaysia proudly emblazoned in her name

The opponent in the red corner however does not, despite having Air A... THAILAND, Air A... INDONESIA, etc etc ;)

Go figure ....... :)

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Stolen from MH's FB wall.

 

249985_10150208045064712_52798899711_6891995_7414348_n.jpg

 

Malaysia Airlines Chairman Tan Sri Dr Mohd Munir Abdul Majid, Qantas Chief Executive Officer Alan Joyce, Malaysia Airlines Managing Director / Chief Executive Officer Tengku Dato’ Sri Azmil Zahruddin and oneworld CEO Bruce Ashby at the signing ceremony this morning.

 

Errrr.....

Quite OT, but the crew on the far left is the one potrayed on the MH Website rite?

 

And.....grey cutex? Ahhhhhh

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Errrr.....

Quite OT, but the crew on the far left is the one potrayed on the MH Website rite?

 

And.....grey cutex? Ahhhhhh

 

hahas!! The right most is Ms Jamuna Michal. One of MH's 'model'. You can see her in many MH's publications and press conference. I was lucky to have her on my flight back to KUL last Feb. A very pleasant lady!! And very beautiful as well!! :p

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The good news is, recent statistics (look for MAR's analysis on this forum) and data show MH front-end yield has increased and they are focusing again on filling the front-end with not just corporate travellers but with wealthy leisure travellers as well. So hopefully, the demand for premium traffic ex-KUL will see a rise in the future. In addition, not that you've said it at all Keith, but the general perception that KUL is NOT a business destination is highly dubious - the problem is that this region, particularly Singapore/Malaysia & Thailand are important regional economic houses - and most corporate travellers ex-EU/US/AU will combine their corporate travels in one go - hence why BKK/SIN have become traditional entry points into the region with the Airline Alliances. Hopefully, with this entry, MAS may now reap the benefits of being the origin of Business traffic in the region with people coming to KUL first before heading to SIN/BKK.

 

Yes, this year I had a had a few MH flights upfront. First I did a ZRH-BOM-MNL-KUL-SIN-ZRH. I just came back from a ZRH-KUL-HKG-MNL-SIN-ZRH. Both trips I could have hubbed out of KUL for my Asian sector, but I only did it for the first trip because the second one I decided to go for Star Alliance mileage and used SIN as an entry point. If MH was One World I would have definitely done so.

 

MH Business Class is quite impressive (although the equipment may be dated). On the ground, it is definitely the best of all airlines I have flown this year (it used to be so-so).

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Congrats to MH!

 

QF sponsors MH for the membership of oneworld, but JQ has some sort of cooperation with AK. Interesting... :pardon:

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I turned up really early at 0720hrs at the oneworld alliance media briefing and breakfast on the sidelines of the 67th IATA Annual General Meeting...

 

First of all, CONGRATS to MH !!!

 

Finally, they're no 'outsider' anymore...

 

K C, did you also meet Hartman, CEO of KLM and new Chairman of IATA, who is presently also in SIN ? Would love to hear his reaction about MH's entry into OW... :pardon:

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See the Dutch media have stated the KLM-MH co-operation AMS-KUL v.v. will continue although no mention was made of the KLM feed onto MH services to Aus/NZ. Anyone know how long this deal has to run? Was it not renewed last year?

 

Wish KLM was Dutch controlled once again.

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Guys, check out this Flyer Talk thread, which was created on 18 July 2000 (11 years ago!!!) which contains some history about MH's almost inclusion into oneworld in the early 2000s. http://www.flyertalk.com/forum/oneworld/185025-malaysia-airlines-about-join-oneworld-alliance.html

 

Also, this is the link to the Flyer Talk's very popular comparison tables for oneworld Ruby (Enrich Silver equivalent), Sapphire (Enrich Gold equivalent) and Emerald (Enrich Platinum equivalent) across all 12 airlines in the oneworld alliance. http://www.hotels-and-travel.de/ffp/oneworld/ow_ruby.htm

 

Suddenly oneworld becoming a very interesting subject to study.

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Really looking forward to the official start next year.

 

Heathrow was looking to keep the alliances in their own terminals (OW in T3 and BA in T5) so I don't see how MH can stay in T4. Likely they will get some grace period but likely eventually MH (and the Golden Lounge) will need to relocate.

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Start to imagine how MH aircraft will look like with oneworld logo. Per tradition, MH should have one or two aircraft with oneworld livery, but please keep the swoosh. At least, it won't be too white.

Edited by Johan Z

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Should not be too difficult to print oneworld on the plane. Its got plenty of white spaces!

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Heathrow was looking to keep the alliances in their own terminals (OW in T3 and BA in T5) so I don't see how MH can stay in T4. Likely they will get some grace period but likely eventually MH (and the Golden Lounge) will need to relocate.

That was a concern as mentioned before. Relocation back to T3 will surely burn some millions of GBP, especially for the relocation of the current Golden Lounge at T4, which is still very new - only opened since August 2009.

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