BC Tam 2 Report post Posted August 23, 2011 They aren’t too sure about the A380s because no one has made money using it yet in the competitive routes Whoever these 'they' are must be convinced that SQ and EK have money tree orchards somewhere that are generating profits for them year in year out Now we know why Khazanah wanted to take action so urgently. They moved in to replace the management well before the announcement of their Q2 results so as to prevent the share price from collapsing even further. Why are you so certain Khazanah is too concerned about downtrend in MH's share price ? Share this post Link to post Share on other sites
Mike P 0 Report post Posted August 23, 2011 Probably A380 cannot make the ROI in such a short time, it would take years. On top of that, other airlines order the A380 because the competitor does so and all have to stay competitive in the market. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted August 23, 2011 We have the 'longest and most delayed A380 put into service by an airline'......first couple of time was Airbus' fault, now its MH's own. Just bloody cancel the A380 (although Leahy may not allow) and order bunch of A330...MH customers base can only support a combination of B737-800, A330-300 and B777-300ER. Non of their route can support A380 all year round on its own. Share this post Link to post Share on other sites
Sharil Abdul Rahman 0 Report post Posted August 23, 2011 Why cant they lease 777s while waiting for the a380s? you can retire the 744 and still have the a380s come in. Share this post Link to post Share on other sites
Izanee 0 Report post Posted August 23, 2011 OMG, these people are so stupid. MH will be another AI in the making... offer of full membership with Star alliance retracted because of delays in sorting out their finances. Funny how all this comes about AFTER tony fernandez announced the share swap deal. Internal sabotage - best way forward. Share this post Link to post Share on other sites
Raymund Yeoh 1 Report post Posted August 23, 2011 MAS mulls delaying alliance, A380s as losses mount Source: http://www.themalays...s-losses-mount/ See I knew something like this will happen sonner or later ........ Share this post Link to post Share on other sites
Mike P 0 Report post Posted August 23, 2011 I bet this kind of announcement would hurt MAS's shares. Share this post Link to post Share on other sites
Izanee 0 Report post Posted August 23, 2011 (edited) sorry, i just cannot believe how these idiots think. MAS clearly NEEDS an alliance - this will help MAS to get the premium frequent flyers that they sooo desperately need. Even the giants SQ, CX and TG are in an alliance. Unless they have big bucks like EK, etc etc they will not be successful on their own. As for competing with QF? This is why QF, BA and major american carriers have shied away from Malaysia. MAS just does not like direct competition. MAS cannot handle direct competition. Then they start resorting to fare dumping and other stupid tactics. Its no wonder that no bloody alliance wanted them. Now is their golden chance to make some headway and the new board (with AK influence no doubt) wants MAS to stay on their own? Absolutely amazing ... Joining forces with AK was a stupid move. It is clear that the decision was made for the benefit of a few power brokers who hide behind the scenes. this is so frustrating ... I don't know why i bother reading aviation news in Malaysia. Edited August 23, 2011 by Izanee Share this post Link to post Share on other sites
Johan Z 0 Report post Posted August 23, 2011 From a gentle harmless MH-AK 'alliance' story, this matter has taken many turns and looks like it's getting worse for MH. Hope they will do the right thing and pick up A350 instead. They need Oneworld more than Oneworld needs them. Share this post Link to post Share on other sites
Robert 0 Report post Posted August 23, 2011 MH should also consider that business on their KUL-LHR and KUL-SYD routes may have declined because the B744 product is old and tired. With the new A380s, it would be easier to market the new product and arrest the decline. Not an easy decision for the new management to make. I agree with you. On a personal level whilst price is important so is the product. When EK and SQ can offer cheaper fares to LHR with only a few hours added to the travel time then its an easy decision. In November my family are visiting and would have liked to travel MAS however the following put them off: 1. Cost - MAS wanted GBP850-890 for a LHR-KUL ticket. EK were charging GBP550-680 and SQ 690-750 2. Product - old planes and a decline in Y class product Share this post Link to post Share on other sites
reezal 0 Report post Posted August 23, 2011 MAS mulls delaying alliance, A380s as losses mount KUALA LUMPUR, Aug 23 — Malaysia Airlines (MAS) is considering delaying its membership with global airline group Oneworld and deliveries of the super airliner Airbus A380 as its new management focuses on cutting losses, which spiked in the second quarter of 2011. The Malaysian Insider understands that MAS will announce a bigger loss today for this year’s second quarter, traditionally its weakest business period, from the net loss of RM242.3 million in the first quarter ended March 31. It posted a pre-tax loss of RM532.6 million for the second quarter in 2010. “The exco met last week and are looking at their options of delaying the alliance with Oneworld because it will cost money to provide interlining services and also upgrade the lounges to their standards,” a company source told The Malaysian Insider. “They are also looking at delaying the A380 deliveries. It’s already delayed since 2008 but the exco is concerned if it can make money for MAS,” he added, referring to the executive committee headed by MAS chairman Tan Sri Mohd Nor Mohd Yusof now managing the airline after managing director Tengku Datuk Azmil Zahruddin resigned effective August 9. Azmil’s resignation was announced after the airline’s biggest shareholder, state asset manager Khazanah Nasional Berhad, swapped 20.5 per cent of MAS stock for a 10 per cent stake in Asia’s biggest budget carrier AirAsia on August 9. The swap enabled AirAsia bosses Tan Sri Tony Fernandes and his partner Datuk Seri Kamaruddin Meranun to sit on the MAS board and help turn around the loss-making flag carrier. Another source confirmed the possibility of delays, pointing out that MAS is now just a designated member of Oneworld since June and has to go through a process that could take as long as 18 months before being a full member of the world’s third biggest airline group. It is understood that a cause of concern is MAS’ sponsor to join oneworld, Qantas, which recently announced it wants to set up two new airlines in Asia with part of its US$9 billion (RM26.81 billion) plane order from Airbus in order to salvage its loss-making international business. Under the plan, the Australian carrier has decided to set up a Japanese budget airline with Japan Airlines and Mitsubishi Corp and a premium airline based in Southeast Asia, possibly Malaysia. “MAS is going to be a premium airline and if Qantas goes ahead with its plans, there will be competition. An alliance might not work then, apart from the costs of meeting the alliance’s standards,” the source said. When MAS announced its entry in Oneworld last June, it said that MAS passengers will gain access to the alliance’s global network which covers almost 950 destinations in 150 countries. MAS Enrich frequent flyer members will be able to earn and redeem rewards on Oneworld’s carriers and vice versa. This strategy was to work with the April 2012 delivery of the first of six A380s that MAS ordered in 2003. There has been three delays for the world’s biggest passenger jet from Airbus, which were first to be delivered in January 2007 before being delayed to last January and the third delay was to this month before it was confirmed for next year. MAS will be the seventh operator of the US$300 million aircraft when it finally arrives but some exco officials are leery about whether it can fill up the plane on its lucrative Kuala Lumpur-London route which is now operated by the aging and fuel-guzzling Boeing 747s. “MAS is losing out because the B747s are old and uses too much fuel. They aren’t too sure about the A380s because no one has made money using it yet in the competitive routes. “It wants to use the B777s as they are fuel-efficient but it's smaller than the B747s,” one source told The Malaysian Insider. The Malaysian carrier’s main competitor in the region, Singapore Airlines, was the launch customer for the A380 and offers competitive rates for seats on that aircraft going to popular destinations such as London and Sydney. “MAS has to compete on the premium market with Singapore Airlines while also keeping its passengers from opting for budget carriers like AirAsia X. It’s a tough business so it has to see what makes money and cut what doesn’t,” the source added. Source: http://www.themalaysianinsider.com/business/article/mas-mulls-delaying-alliance-a380s-as-losses-mount/ When things are JUST ABOUT to get interesting with MAS induction into Oneworld, the arrival of A380 and all that, then we get this SHITTY NEWS? ...WTF is wrong with these people? and now I started to get suspiscious with that cunning TF....First, Firefly Jet got axed, and now A380 and Oneworld delayed? hmmm..what a wonderful director MAS has..Dulu bukan main marah lagi Airbus delayed A380 and siap mintak compensation? and now lain pulak jadinya...i think AIRBUS should DEMAND compensation from MAS now. I personally think TF see MAS A380 (premium economy) is a big threat to his AirAsia X's London run..so what better way to do then to delay the whalejet....smart a**hole! Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted August 23, 2011 When things are JUST ABOUT to get interesting with MAS induction into Oneworld, the arrival of A380 and all that, then we get this SHITTY NEWS? ...WTF is wrong with these people? and now I started to get suspiscious with that cunning TF....First, Firefly Jet got axed, and now A380 and Oneworld delayed? hmmm..what a wonderful director MAS has..Dulu bukan main marah lagi Airbus delayed A380 and siap mintak compensation? and now lain pulak jadinya...i think AIRBUS should DEMAND compensation from MAS now. I personally think TF see MAS A380 (premium economy) is a big threat to his AirAsia X's London run..so what better way to do then to delay the whalejet....smart a**hole! Unfortunately you're living in Malaysia, where the little people will be trampled by the bigwigs. Share this post Link to post Share on other sites
Waiping 12 Report post Posted August 23, 2011 Another round of VSS, maybe? Share this post Link to post Share on other sites
CH Teo 0 Report post Posted August 23, 2011 I think if that 6 pieces of A380 being further delayed or even subsequently canceled, Middle East, European carriers plus SQ will earn the passengers for sure due to aging fleets...They should know that their planes really need to be replaced across the operation...(and those brand new ATR 72 seems looks a little old just after a bloody 2 to 3 years, wanders what the MRO are doing?)...:S... Share this post Link to post Share on other sites
J. Suri 0 Report post Posted August 23, 2011 Considering cancelling the a380s? What are they thinking of? While realizing the B747 are the big gas guzzler, at the same time they want to rival the premium carriers such as SQ, CX, QR, EY, EK, etc..etc with that piece of junkies? The new management board need to come out with better ideas other than this! Share this post Link to post Share on other sites
Mike P 0 Report post Posted August 23, 2011 Does it even justify or totally contradicting? Airbus has already compensated MH on the late delivery of aircraft and now MH wants to delay it further? What's the benefit for Airbus at all? Customer always right? Share this post Link to post Share on other sites
Rob 0 Report post Posted August 23, 2011 Sh*t has truly hit the fan. Run! Share this post Link to post Share on other sites
Raymund Yeoh 1 Report post Posted August 23, 2011 Does it even justify or totally contradicting? Airbus has already compensated MH on the late delivery of aircraft and now MH wants to delay it further? What's the benefit for Airbus at all? Customer always right? 1) MH is just using this as an excuse 2) Once MH take delivery of the A380 they need to make more payment to Airbus. The thing now is they are broke!!!....where r they gonna find the money Share this post Link to post Share on other sites
J Chong 0 Report post Posted August 23, 2011 (edited) if they delay joining oneworld or cancel the A380s I am moving my business elsewhere. No point putting money in or going out of my way to support such backward thinking companies Edited August 23, 2011 by J Chong Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 23, 2011 2) Once MH take delivery of the A380 they need to make more payment to Airbus. The thing now is they are broke!!!....where r they gonna find the money I believe uncle Tony is quite cash rich ? Then there is KWSP, Petronas, ....... Share this post Link to post Share on other sites
Mike P 0 Report post Posted August 23, 2011 So what MH is going to do in long terms for the popular long haul routes such as London and Sydney? In order to compete with regional airlines like SQ and QF or even BA offering on luxurious and spacious A380? Simply they're going to slash the fares more? Or people rather pay more to sit on a newer and more advanced aircraft for 12 hours long routes and flights. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted August 23, 2011 Somebody, anybody throw MH a life support machine?!! Its in ICU again!! Share this post Link to post Share on other sites
KK Lee 5 Report post Posted August 23, 2011 Given MH attitude on QF yet to set up premium airline, MH don’t have the team spirit of joining any alliance. If MH is to decline to join OW, not sure there will be another chance for MH to join any alliance again On trunk route like KUL-LHR, AMS, SYD, MEL, etc has more demand than MH A380 could cater. It seems the executive committee lack confidence on MH to compete with SQ, EK, QF, etc Believe the gomen should consider to wind up MH. As for 19,000 employees, the quarterly loss of RM500 million should be enough to pay for redundancy payment. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 23, 2011 ..... MH don’t have the team spirit of joining any alliance. If MH is to decline to join OW, not sure there will be another chance for MH to join any alliance again MH already entered into alliance with AK (and by extension D7, QZ etc) Better to keep matters just within the kampung Share this post Link to post Share on other sites
Raymund Yeoh 1 Report post Posted August 23, 2011 I believe uncle Tony is quite cash rich ? Then there is KWSP, Petronas, ....... He may look rich from the outside but inside (I'm just assuming), he has lotsa bank lons to pay off......he just bought over QPR to add to his portfolio. As for our local GLC link companies......they should concentrate on what they know best instead of trying to dabble in airline industry.....my personal opinion Share this post Link to post Share on other sites