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MAS Joins oneworld!

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KLM has been operating DAILY to KUL at least since 2000; the only difference is the routing, while it operated to MNL before, it changed to CGK lateron...equipment was 744 (both combi and full-pax) before, while it's 772/77W now...

 

Even though both KL and MH state, the code-share will remain intact, I guess it will take another 1-2 years and these ties will be severed (my gutt feeling is KL being pressed by AF to end the code-share), resulting in a big loss/reduction of passengers booked by KLM...it might even reduce capacity of MH from A380 back to 744 or even 772 again on the AMS flights IMHO...

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Is there a need to go to DFW? AA already have a presence at LAX (2nd biggest after UA) so I don't think it's necessary.

Don't know; but QF has just started flights to DFW as it is centrally located in the US, minimizes time for transfer and flying time to other areas in the US. Location and operation wise sounds sensible , but economics may be otherwise.

 

Frankly, it will be convenient for those intend to travel to Mid West or Central US .

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Nah, MH could hardly support EWR.. It would be impossible to be able to support DFW.

 

Besides, LAX is good enough in terms of connections. Hardly a difference if say one wants to fly to ORD for example, they would still need to make one stop and flying time will probably stay the same.

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Just ticketed our Easter trip using an amazing MH Business sale fare, MEL-xKUL-BKK-xKUL-MLE-KUL-MEL for a touch under $7000 incl tax for both the OH and myself! :good: Look forward to my first MH long haul experience in a long while... especially as oneworld member-elect!

 

SQ was more than double the cost! Even if we'd used BMI miles for one ticket, the total cost would still be more expensive than what we paid for 2 revenue MH tickets. Taking note of the Wing & Prayer thread, I hope these massive sales are sustainable for the airline in the long run though.

 

Only question is where to credit the flights. They presently have an agreement with Virgin Australia so we've inserted our Velocity numbers into the booking, but I suspect we might end up earning QFF points by Easter. Hopefully we won't be left in the limbo between them terminating current arrangements with Virgin and starting FF linkage with QF! I don't mind crediting to Enrich if worse comes to worst but would prefer not to have miles orphaned in yet another FFP, and Enrich's 3 year hard expiry isn't appealing.

Edited by Keith T

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There is a media briefing session with regards to MH's entry into oneworld today.

 

248355_10150216818039712_52798899711_6970392_1057974_n.jpg

 

Hopefully we will get more details about what MH really expect from joining.

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Anyway planning around the world on Oneworld network soon?

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Julius, ONEWORLD still advertises MEXICANA on its' website.

 

I know....I found it quite weird. There were talks on resurrecting Mexicana as LCC with support from American Airlines and host of other foreign airlines. However, all weren't successful. The group that bought MX is now practically in coma. Even if it is resurrected, it can't fight with AM competitively anymore as the latter virtually dominate Mexico with Interjet and Volaris. Being new LCC will be ousted as well, like what happened to Aer Lingus (who chose to leave the group) :sorry: :sorry:

 

On a side note, Star Alliance dropped Mexicana immediately from its publicity materials when it left the alliance in 2004.

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First benefit of joining oneworld just being confirmed. MH will exercise its 20 B738s options at the Paris Air Show 2011 in view of

 

MAS managing director Tengku Datuk Azmil Zahruddin said yesterday that “... we may find that we need more planes more quickly'' given its collaboration with OneWorld airline group and the growth in demand for air travel expected in Asia.

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MAS CEO Foresees Double-digit Growth In Profitability Via Alliance

June 16, 2011 17:13 PM

KUALA LUMPUR, June 16 (Bernama) -- Malaysia Airlines foresees double-digit growth in profitability via its alliance with the third largest global airline group, OneWorld, says Chief Executive Officer Tengku Datuk Azmil Zahruddin.

 

He said the company may also have to take delivery of aircraft, earlier than scheduled, as the alliance may open up opportunities to fly to new destinations.

 

"There will be significant (improvement) in revenue (and) double digit growth in profitabilty," he said at a press conference here Thursday.

 

The primary benefit would be seamless products, he said, adding that, besides improvement in revenue and profits, the alliance would also result in cost savings.

 

He cited lounge services at airport as an area which could benefit in terms of upgrade and improvement.

 

"When a number of member (airlines) fly to a particular airport, they can join together and share the cost of using one lounge compared with each airline having respective lounges and check in counters," he explained.

 

MAS reported a pre-tax loss of RM238 million for the first quarter ended March 31, 2011 compared with RM320 million in pre-tax profit recorded in the same quarter last year. Revenue stood at RM3.19 billion, down from RM3.3 billion, registered previously.

 

OneWorld's other alliances are Airberlin, AmericanAirlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Kingfisher, Lan, Malev, Mexicana, Qantas, Royal Jordanian and S7 Airlines, which will provide MAS access to 900 code sharing destinations in 150 countries.

 

Tengku Azmil said although it usually took about 18 months to integrate the system with the alliance, MAS aimed to do it within a year, meaning those flying MAS could enjoy the seamless connection as soon as next year.

 

"There will be some investment to integrate the system," he said.

 

Asked on fleet deployment, he said although it was too early to access it now,"we may find that we need more planes more quickly."

 

MAS ordered 35 of the Next-Generation 737-800 airplanes in 2008,to be delivered in stages. The airline also acquired purchase rights for an additional 20 Next-Generation 737-800s.

 

It has also ordered six A380s with delivery expected to begin in 2012.

 

He said the alliance was also timely,"as we get more and more planes. (We will see) where we can deploy the planes in the best way possible."

 

Tengku Azmil also explained that the airline does not need to discuss with the alliance to expand its destination.

 

"We can fly where ever we want provided we have the traffic rights (and) with the large network that the alliance provides some destinations, which were not viable before, may make sense now and we may start flying there," he added.

 

However, he said it was difficult to name them at this point of time.

 

He also said that there were are no fuel arrangement with the alliance.

 

Asked how it would impact on the maintenance, repair and overhaul (MRO) business, he said, there could be a business opportunity although there was no compulsion for the alliance's members to do maintenance within the group.

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Malaysia Airlines foresees double-digit growth in profitability via its alliance with the third largest global airline group, OneWorld, says Chief Executive Officer Tengku Datuk Azmil Zahruddin.

 

He said the company may also have to take delivery of aircraft, earlier than scheduled, as the alliance may open up opportunities to fly to new destinations.

 

"There will be significant (improvement) in revenue (and) double digit growth in profitabilty," he said at a press conference here Thursday.

 

The primary benefit would be seamless products, he said, adding that, besides improvement in revenue and profits, the alliance would also result in cost savings.

 

Asked on fleet deployment, he said although it was too early to access it now,"we may find that we need more planes more quickly."

 

He said the alliance was also timely, "as we get more and more planes. (We will see) where we can deploy the planes in the best way possible."

It is great to hear this coming from the CEO himself. MH could have these all since the year 2000, 11 years ago, but we threw it all for ego and personal interest of some quarters. Heck even the historical billion of losses recorded in 2002 and 2005 could have been avoided should MH is already in oneworld then.

 

Now I have a new respect for MD/CEO Tengku Azmil for being the CEO that brought MH into oneworld. I think that itself is far more gratifying than all the BTPs that former CEO Idris Jala had done in the past.

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Exactly my feelings, Azizul: they could have avoided those dips when they had joined (any) Alliance at that early stage...moreover, no GA and VN in Skyteam in that period aswell...

 

Synergies would have been 'earned' already much earlier when MH would have been more desicive about joining...

 

Glad to notice, MH 'finally saw the light' by joining OW...

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Better late than never

 

Anyway, is it possible that MAS will defer its fleet withdrawal plan while receiving new planes for its 'potential expansion' ?

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I think there will be a possibility that the old fleet will be retained for slightly longer. Even now, after 4 new B738s and 3 new A333s delivered, none of the old aircraft are being decommissioned (although 2 B734s and 1 A330 are rumoured to leave the active fleet this year/soon). But I hope MH have done its calculation precisely because by retaining these old aircraft, MH will still have to deal with the high fuel cost that caused them a loss in Q1 2011.

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Aircraft renewal usually means to refurbish the product and services and to enhance customer's experience. However, retaining the old aircraft could seem to be MH's contingency plan to expand the network.

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He said the company may also have to take delivery of aircraft, earlier than scheduled, as the alliance may open up opportunities to fly to new destinations.

 

He said the alliance was also timely,"as we get more and more planes. (We will see) where we can deploy the planes in the best way possible."

 

Tengku Azmil also explained that the airline does not need to discuss with the alliance to expand its destination.

 

"We can fly where ever we want provided we have the traffic rights (and) with the large network that the alliance provides some destinations, which were not viable before, may make sense now and we may start flying there," he added.

 

However, he said it was difficult to name them at this point of time.

I think these will be the new/resumption routes that MH should be considering post oneworld announcement:

 

Australia

- KUL-DRW

- KUL-CNS

To connect to all co oneworld member QF's main destinations.

 

New Zealand

- KUL-CHC

To increase oneworld's catchment area in the South island of New Zealand.

 

India

- KUL-CCU

To connect to the only big Indian city missing in MH's network.

 

Japan

- KUL-NGO

- KUL-FUK

To connect to co oneworld member JL's main destinations.

 

Russia

- KUL-DME

To connect to S7's hub, provide new link for Russia/Eastern Europe to beyond via KUL.

 

Middle East

- KUL-RUH

- KUL-KWI

- KUL-CAI

To connect to underserve market East bound for oneworld.

 

Western Europe

- KUL-MAD

- KUL-HEL

To connect to IB's hub and create synergies with LAN at MAD. To connect to AY's hub and reach a new catchment area in the Scandinavian region with AY at HEL (especially if the JV with KLM will be terminated).

 

These will be on top of reintroduction of heaps of former MH stations in the ASEAN region (CEB, BPN, those in Indonesia) and China but I suppose some of the lesser destinations in yield area will be assigned to FY instead. MH will code share with FY and oneworld passengers flying from London to Balik Papan for instance may have to fly MH for the LHR-KUL sector and FY for the KUL-BPN sector under MH flight code.

 

That will be yours truly route analysis from my armchair CEO POV.

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I wonder if some other European routes will be back as well, eg. Zurich. Currently, SQ/Thai/Swiss *A control the market between Switzerland (and other Swiss connections) and asia and australia. Emirates and Qatar have come in but not really in a big way. If One World wants to capture this market, MH could come back to ZRH!

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I think other than MH's current European destination and oneworld hubs that I suggested, ZRH and MUC should be high on the list too. MH can now command a route network in Europe as extensive as SQ's for being the sole oneworld member in the ASEAN region.

 

But MH's constraint would be the lack of aircraft for new long haul missions. And replacement for the exiting 17 B772s have yet to be made.

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MAS plans partnerships with oneworld members

KUALA LUMPUR: Malaysia Airlines (MAS) aims to form partnerships with all the 14 member airlines in oneworld following its recent move to join the alliance.

 

Senior vice-president of international affairs Germal Singh Khera said the partnerships were expected to enhance MAS’ code-share business and drive its future growth.

 

“Our participation in oneworld is in line with the aim to continuously enhance customer experience, which will allow our customers to gain access to the alliance’s global network,” he told a media briefing here yesterday.

 

He said MAS planned to discuss with all the members in oneworld the possible partnerships that could be formed with them.

 

“At present, we are known as a ‘member elect’ in the alliance, waiting for the formal membership agreement, which is expected to be completed by the end of next year,” Germal said.

 

oneworld is one of the three major international alliances which provide convenient marketing branding to facilitate travellers making inter-airline code-share connections with countries. — Bernama

 

http://biz.thestar.com.my/news/story.asp?file=/2011/6/22/business/8945899&sec=business

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I wonder if some other European routes will be back as well, eg. Zurich. Currently, SQ/Thai/Swiss *A control the market between Switzerland (and other Swiss connections) and asia and australia. Emirates and Qatar have come in but not really in a big way. If One World wants to capture this market, MH could come back to ZRH!

 

With the new Berlin airport featuring massively expanded capacity and thus supporting viable long haul flights, and Berlin being the main hub of Air Berlin, I wonder if oneworld members will start focusing on flights to Berlin in favour of Frankfurt or Munich? I suspect the lack of long haul flights into Berlin isn't for the lack of demand, but rather the current infrastructural constraints. The nighttime curfew might lessen the appeal though.

Edited by Keith T

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MH should plug the gaping hole in oneworld's direct connectivity between South America and South Africa. Once that's done I can plan my RTW trip with oneworld. :)

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With Qantas announcing a review of their loss-making international arm, some speculate a reduction in international routes so it's possible that the flying kangaroo will not be making a return to KUL sooner than expected, but instead would slap on a QFXXXX flight number on existing MH routes in and out of Australia.

 

Link to Australian Business Traveller and The Australian:

http://www.ausbt.com.au/qantas-tipped-to-axe-international-routes-increase-reliance-on-jetstar-and-oneworld-partners

http://www.theaustralian.com.au/business/aviation/qantas-underlying-profit-to-rise-at-least-33pc-as-reaches-deal-on-rolls-royce-a380-engine/story-e6frg95x-1226079871775

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MH should plug the gaping hole in oneworld's direct connectivity between South America and South Africa. Once that's done I can plan my RTW trip with oneworld. :)

Considering your affinity for the red one, wouldn't be surprised if that statement of yours end up what feels like a stab in T/S TF's heart :p

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Considering your affinity for the red one, wouldn't be surprised if that statement of yours end up what feels like a stab in T/S TF's heart :p

 

hahaha, i'm just a simple value-for-money traveller-consumer. who cares about tf or azran! :D

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