Josh T 0 Report post Posted August 16, 2011 So AK really did see FY as a threat on the trunk domestic routes! Share this post Link to post Share on other sites
dean hizudy 0 Report post Posted August 16, 2011 (edited) Sapphire is kind of gemstone.Sapphires are commonly worn as jewelry. You guys can read more about it here:My link I think most of you forgot that MAS in Malaysian means GOLD. So, having a subsidiary with a name related to natural mineral /jewelry is perfect, no? Edited August 16, 2011 by dean hizudy Share this post Link to post Share on other sites
KC Sim 2 Report post Posted August 16, 2011 So the prospects for Malaysian aviation is this: - Malaysia Airlines, a premium full service carrier - Sapphire, a premium full service regional carrier - Firefly, a full service domestic and regional carrier - AirAsia X, a medium and longhaul low cost carrier - AirAsia, a domestic and regional low cost carrier Add to that, the possibility of a new premium carrier with 49% Qantas ownership ... or is there the possibility for Qantas to take a 49% stake in Sapphire. I quite like the name Sapphire as it is easily understood internationally and is associated with something luxurious. As mentioned earlier, it goes well with Gold (MAS). These are the most interesting times for Malaysian aviation ... aptly evolving just as Malaysia celebrates the centenary of aviation. KC Sim Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 17, 2011 So the prospects for Malaysian aviation is this: - Malaysia Airlines, a premium full service carrier - Sapphire, a premium full service regional carrier - Firefly, a full service domestic and regional carrier - AirAsia X, a medium and longhaul low cost carrier - AirAsia, a domestic and regional low cost carrier You left out MASwings, the aspiring regional carrier of Malaysian Borneo (of indeterminate genre) My suspicion though is that all that market demarcation is being used more as justification for (and to deflect criticisms of) the MH/AK share swap. Bearing in mind the upcoming rights issues, I don't think the current MH/AK linkage will remain status quo, and that those quoted missions will be very much consolidated in not too distant future Furthermore, what confidence do we have that a Malaysian corporate can be disciplined enough to observe and adhere to its assigned market segment ? Can you even begin to imagine the potential for inter-departmental squabbling ?! Share this post Link to post Share on other sites
Mike P 0 Report post Posted August 17, 2011 Conclusion: Now strategy is targeting on demarcation of the markets. Share this post Link to post Share on other sites
Kee Hooi Yen 0 Report post Posted August 17, 2011 You left out MASwings, the aspiring regional carrier of Malaysian Borneo (of indeterminate genre) and Berjaya-Lion Air Share this post Link to post Share on other sites
flee 5 Report post Posted August 17, 2011 Just as it starts to soar, Firefly gets its wings clipped AS THE dust settles over the share swap between Malaysia Airlines and AirAsia, not much emphasis has been given to community airline Firefly, which was started by MAS in 2007. From analysts' reports, it can be gleaned that Firefly, which started out as a turboprop operator and later added jets, is set to return to basics. It will focus on the turboprop planes and operate out of Sultan Abdul Aziz Shah Airport in Subang. Firefly's resources - such as existing jets and those on order - will be channelled into starting a new full-service regional airline known as "Sapphire". The question which begs an answer is: Why are the jet operations, which have just taken off, ending up as a pawn, following the share swap between major shareholders of AirAsia and MAS? When MAS allowed Firefly to take over some of the jet operations and fly out of the Kuala Lumpur International Airport (KLIA) earlier this year, it was meant to take on regional competitors like Silk Air, Jetstar Airways, Nok Air and AirAsia. Several domestic routes which were bleeding MAS previously were taken over by Firefly and it appeared that MAS was winning the game against AirAsia with these routes. Firefly is a brand which has won multiple awards, its turboprop operations have been making money and the airline was set to rake in good money in about a year after its jet services began. To step in now and tinker with the operations of an airline that was operating more efficiently than AirAsia boggles the minds of many, especially the flying public, who will no longer have the option of travelling on a Firefly jet at competitive fares and will have to contend with AirAsia. Also to consider are the various airports which Firefly has started flying to, such as Kota Kinabalu which is likely to end up with six fewer flights daily, and Kuching, having to contend with eight fewer flights. Firefly now operates 10 ATR 72-500 turboprop aircraft and is set to take delivery of two more planes soon, bringing its fleet to 12. It has options for three more aircraft for possible delivery in 2012. For its jet operations, Firefly operates six Boeing B737-800s (five of which are based at KLIA and one in Kota Kinabalu), while two B737-400s are based in Johor Baru. Firefly is scheduled to take delivery of its seventh B737-800 in November. The fact that the community airline is looking at more aircraft and will stick to the 20 orders is positive news and is likely to ensure continued profitability of the turboprop operations. What remains a shame and a total waste, however, is the fact that something which has and continues to show promise and could have resulted in placing MAS ahead of the curve, is now being allowed to be axed, in the name of added synergies and a supposed boost to the aviation sector. Source: http://www.btimes.com.my/Current_News/BTIMES/articles/masiax/Article/index_html Share this post Link to post Share on other sites
Phil M. 0 Report post Posted August 17, 2011 Foreign employed ground staffs who are clueless of how Malaysian live and behave should not be put to the front to represent the airline. First impression is always the most important. Robotic mono-toned staffs should not be in the service line! I totally agree to this Like there is no malaysian students out there looking for part time work? Share this post Link to post Share on other sites
flee 5 Report post Posted August 17, 2011 MAS to review fleet PETALING JAYA: Malaysia Airlines (MAS) will review its entire fleet requirement, including the interiors for the A380 superjumbo and A330-300 aircraft, in line with the strategic shift to focus on being a full-service premium carrier. According to a source, given the competitive landscape, MAS needed to ensure that its product was far more compelling than its rivals in the similar league, namely Cathay Pacific, Emirates, Qatar Airways and Singapore Airlines. Only yesterday, Australia's Qantas said it would set up a premium airline in Asia to take advantage of growth in the region with its CEO Alan Joyce looking at either Kuala Lumpur or Singapore as the base. The new airline, which will come with a “new name, feel and look,'' will begin flying next year and will crank up the competition in the segment. Noteworthy is that Qantas is also the sponsor for MAS' entry into the oneworld alliance. MAS' newly-appointed executive director Mohammed Rashdan Yusof told StarBiz recently that the possibility of working with Qantas had always been there since the oneworld alliance announcement and that the executive committee would look into that possibility. MAS saw a major board and management shakeup last week to help lift its waning operations. Whether there is a need to speed up delivery of its aircraft order is unclear but a source did not rule out the possibility of the A380 aircraft “having horizontal beds and a lounge in the skies to match the offerings of other carriers with similar aircraft type.'' The source said MAS would also review its requirement for freighter planes given the weakening global economic outlook and may ground its B747 sooner than later. One of MAS' biggest woes is its aging fleet with an average age range of 11 to 12 years. Had the previous management not taken steps to modernise the fleet, it would have been impossible for the airline to have half its fleet consisting of new aircraft by 2012. “MAS is fortunate that it is where it is today. Our current position could not have been possible without the tireless efforts of our leaders such as Tan Sri Md Nor Yusof, Datuk Ahmad Fuad Dahlan, Datuk Seri Idris Jala and Tengku Datuk Azmil Zahruddin,” Rashdan said. “All the turnaround plans put in place undoubtedly saved the airline from insolvency then, and their further work to re-equip our fleet with state-of-the-art product such as the new 737-800s, the new A330-300s and our flagship A380s will surely put our airline on a stronger footing. “The only reason we can now see far ahead is because we are standing on their shoulders.'' MAS has ordered six A380 aircraft, 45 B737-800, 15 A330-300 and four freighters. If all goes as planned, by end-2012, MAS will have taken delivery of five A380, 14 B737-800, eight A330-300 and the four freighters. The new-generation aircraft are expected to cut its fuel bill by 10%-15%. The first delivery of the A380 is expected in May next year and will likely be deployed for plying cities such as Sydney, London and Amsterdam. However, a detailed study that takes yields and demand into consideration and a route network revamp is also on the cards. Source: http://biz.thestar.com.my/news/story.asp?file=/2011/8/17/business/9314370&sec=business Share this post Link to post Share on other sites
Rob 0 Report post Posted August 17, 2011 So the prospects for Malaysian aviation is this: - Malaysia Airlines, a premium full service carrier - Sapphire, a premium full service regional carrier - Firefly, a full service domestic and regional carrier - AirAsia X, a medium and longhaul low cost carrier - AirAsia, a domestic and regional low cost carrier Add to that, the possibility of a new premium carrier with 49% Qantas ownership ... or is there the possibility for Qantas to take a 49% stake in Sapphire. I quite like the name Sapphire as it is easily understood internationally and is associated with something luxurious. As mentioned earlier, it goes well with Gold (MAS). These are the most interesting times for Malaysian aviation ... aptly evolving just as Malaysia celebrates the centenary of aviation. KC Sim Inclusive of MASwings, that's six airlines, that's pretty good, lots of options. Power to the consumer, or is it? Share this post Link to post Share on other sites
flee 5 Report post Posted August 17, 2011 AirAsia X-Khazanah deal hinges on valuation PETALING JAYA: Investment bank Morgan Stanley is expected to finalise the proposed valuation of the 10% stake in AirAsia X to be purchased by Khazanah Nasional Bhd and present it to the long-haul budget carrier's board by September, according to sources. While it was too premature to put a price tag on the proposed purchase, sources said Morgan Stanley had been appointed the deal adviser and was currently working on the deal valuation. Khazanah will be issued new shares in AirAsia X and is expected to come in as a pre-initial public offering (IPO) investor of AirAsia X, ahead of the airline's plans to list next year. In 2008, AirAsia X executed an agreement to place a 20% stake to Bahrain-based Manara Consortium and Japan's Orix Corp for US$75mil (or RM250mil). When the placement was done, it was one year after the long-haul low-cost carrier established operations. The valuation placed on AirAsia X's shares today would be higher given the growth and expansion in business experienced by the airline since. Last year, AirAsia X achieved a revenue of RM1.3bil with a net profit of RM80mil from carrying some 1.92 million passengers. The airline targets to touch RM2bil in revenue this year, owing to better ancillary income and higher yields, and carry some 2.7 million passengers. AirAsia X now has a fleet of nine Airbus A330 and two Airbus A340 with a route network to 15 destinations globally. “Everything hinges on the valuation before Khazanah will look to accept the share purchase. So it is not a done deal just yet,” said the source. When contacted, AirAsia X chief-executive officer Azran Osman-Rani said Khazanah's potential participation would signal the entry of a strong institutional investor into the company and would be used as a benchmark for the subsequent IPO price. Current shareholders of AirAsia X include Aero Ventures Sdn Bhd (52%), AirAsia Bhd (16%), Corvina Holdings (10%), Orix Corp (11%) and Manara Consortium (11%) Last week, Malaysia Airlines (MAS), AirAsia and AirAsia X signed a collaboration agreement, whereby the outcome of the agreement will see MAS focus on being a full-service premium carrier, AirAsia on being a regional low-cost carrier (LCC) and AirAsia X, a medium-to-long-haul LCC. Azran said it was important for an airline to establish a clear product positioning and brand. The deal would allow all three airlines to operate in their respective market segments. He added that a premium airline like Singapore Airlines realised the need to set up a separate entity, a long-haul budget carrier, to compete with AirAsia X so as not to dilute the parent company's brand. “Previously, when MAS was competing with AirAsia X, it didn't make sense,” Azran said. The agreement creates a clear distinction in which segments the three local airlines will operate in and Azran said it was an increasing global trend to see airline groups set up different carriers within an airline group to address different segments, as seen with Qantas' announcement yesterday in establishing a new premium airline in Asia. Azran also emphasised that the collaboration agreement gave promise to a more rational route policy that would allow all three airlines to compete globally and domestically. “The agreement allows us to align capacity to where demand is. For instance, there are a large number of people flying Singapore Airlines to Kuala Lumpur from Sydney as there is not enough capacity,” he added. Azran had previously stressed that a factor weighing on its IPO process was the lack of a route allocation policy by the Government, which was needed to provide clarity for the airline's current and future investors. Source: http://biz.thestar.com.my/news/story.asp?file=/2011/8/17/business/9310531&sec=business Share this post Link to post Share on other sites
Ikman Ikreza 0 Report post Posted August 17, 2011 Inclusive of MASwings, that's six airlines, that's pretty good, lots of options. Power to the consumer, or is it? It's good to see 6 airlines in our country, but each airlines operated in different services section. After this we only have 1 airlines LCC for domestic, so not so good to the consumer I guess. Share this post Link to post Share on other sites
Naim 6 Report post Posted August 17, 2011 It's good to see 6 airlines in our country, but each airlines operated in different services section. After this we only have 1 airlines LCC for domestic, so not so good to the consumer I guess. They are carving the market out: satu untuk aku, satu untuk engkau, satu untuk aku, ... Share this post Link to post Share on other sites
Ikman Ikreza 0 Report post Posted August 17, 2011 They are carving the market out: satu untuk aku, satu untuk engkau, satu untuk aku, ... Agreed. In simple words to say it's monopoly game. Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted August 17, 2011 They are carving the market out: satu untuk aku, satu untuk engkau, satu untuk aku, ... So damn true. Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted August 17, 2011 They are carving the market out: satu untuk aku, satu untuk engkau, satu untuk aku, ... And the architect of this is definitely not MH, that's for certain. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 17, 2011 Agreed. In simple words to say it's monopoly game. It doesn't fit into the monopoly mould too well, since they (MH, AK, D7, FY etc) remain separate and distinct entities More like anti-trust violation with their declared intentions Actually, monopolies are not illegal but anti-trust violations are (my understanding of it anyway) I'm just wondering if possibility of this MH/AK tie up was ever brought to attention of Oneworld members before they voted MH in ? Imagine it would not be in interest of the alliance to admit a member in that is a bit confused as to what it wants done in time to come as well as a 'competitor' having a say in it's direction to boot Share this post Link to post Share on other sites
Naim 6 Report post Posted August 17, 2011 It doesn't fit into the monopoly mould too well, since they (MH, AK, D7, FY etc) remain separate and distinct entities More like anti-trust violation with their declared intentions Actually, monopolies are not illegal but anti-trust violations are (my understanding of it anyway) It's a cartel, a mafia. Share this post Link to post Share on other sites
flee 5 Report post Posted August 17, 2011 And the architect of this is definitely not MH, that's for certain. Sounds very much like a Khazanah idea to me. They have been trying very hard to merge Proton and Perodua too. Khazanah does prefer its investments to have a quasi monopoly of the market for obvious reasons. Share this post Link to post Share on other sites
flee 5 Report post Posted August 17, 2011 One of MAS' biggest woes is its aging fleet with an average age range of 11 to 12 years. I think they will need to come up with retirement plans for their old B734/A33x/B744 aircraft. So far they have not retired any old aircraft and FY is even adding more old B734s to their fleet! They could have easily taken on exMH B734s but did not. Contrary to what is reported in the article, I would say that the previous managements did not do a good fleet planning job. If they did, the replacements for the B734s and A33x's would have been near completion by now. Then we only need to wait for B772 and B744 replacements to arrive. As of today, we still don't have any idea what will replace the B772s. So is that considered good work by the previous managements? Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 17, 2011 (edited) It's a cartel, a mafia. Yup, that was the term that escaped me Someone made an offer that could not (and should not) be resisted In other places, these sort of practices land people in jail Here it's being lauded as a national triumph MAS to review fleet PETALING JAYA: Malaysia Airlines (MAS) will review its entire fleet requirement, including the interiors for the A380 superjumbo and A330-300 aircraft, in line with the strategic shift to focus on being a full-service premium carrier..... Should we brace for another deferral of dugong's arrival ? Edited August 17, 2011 by BC Tam Share this post Link to post Share on other sites
KC Sim 2 Report post Posted August 17, 2011 Hardly a pro-consumer development here. Malaysia Airlines, Sapphire, FireFly, MASwings, AirAsia and AirAsia X are all linked to one another or Khazanah Holdings ... a cartel-arrangement that will certainly not gain approval of anti-trust laws in many countries. If Qantas and MAS were to jointly start up a new premium airline based in KUL (and this is not Sapphire), then it gets even more interesting. Assuming that all these happen and anti-trust laws in Malaysia subsequently catches up with the rest of the world, I wonder if the commission that upholds that law could act retrospectively and declare the arrangement between all these carriers illegal and force a split somewhere. For the time being, all I can say is that the photographers among us are all "suffering" from uncontrollable twitching in our index fingers! When the time is right, a spotting trip to KUL is an absolute must. Meanwhile, I am glad that my friends and I are jumping onboard the Firefly flight from Johor Bahru to Kota Kinabalu this Saturday and back - before Firefly reverts to being a turboprop operator! How timely! KC Sim Share this post Link to post Share on other sites
dean hizudy 0 Report post Posted August 17, 2011 Inclusive of MASwings, that's six airlines, that's pretty good, lots of options. Power to the consumer, or is it? Firefly-Melaka Air? Share this post Link to post Share on other sites
Rob 0 Report post Posted August 17, 2011 Firefly-Melaka Air? During my recent trip to Penang I gave Silverfly ticket desk a look, the only thing that remains is the Silverfly banner at the top, nothing else. I think one could predict that this arrangement's gonna end up like Silverfly, Heritage Air whatnot, and be correct at the end of the day. Then again if they play their cards right it could work out in their favor Share this post Link to post Share on other sites
CH Teo 0 Report post Posted August 17, 2011 4 airlines, 1 group; it's a little too much. If different sectors like TG, still acceptable. Really interesting days ahead...but anyway, Firefly and MASwings should grow their turboprops fleets anyway... Share this post Link to post Share on other sites
