MAS and AirAsia Shares Swap

[Leong Chuo Sheng 0]

And the headless chickens continue.....

[Mike P 0]

MAS new short-haul premium carrier will take off by January

By B.K. SIDHU

bksidhu@thestar,com.my

 

 

 

PETALING JAYA: Malaysia Airlines' (MAS) new short-haul premium carrier will take off by January. However, it is not likely to be named Sapphire, as indicated earlier. Instead, said a source, the Firefly brand might be retained or there would be a new brand incorporating the MAS name.

 

The short-haul premium airline would also compete with AirAsia because there will be route overlaps in the market segment.

 

It is learnt that there would be no duplication of routes between MAS' long-haul premium operations and those of the short-haul premium airline. “Sapphire is definitely out, but it's not certain if the Firefly name would be used. The entire product offering has to be changed because it would be a full-service airline that offers business class seating. It would also be a feeder service for MAS' long-haul operations. It has to have the right branding and product offering to attract both the business and leisure travellers,” said the source.

 

“Eventually, we are talking about a product that offers value for money. Naturally, the business model has to change,” he added.

 

It is learnt that the MAS board approved both the long-haul premium and short-haul premium structures yesterday, paving the way for planning and implementation.

 

Firefly is a community airline that operates from Subang, using turboprops. It also flies jets from the KL International Airport (KLIA) but this will cease by end-October.

 

MAS' transformation stems from the share swap between MAS and AirAsia's founding members, who now own 20% of MAS. As part of the change, the interior of the aircraft for the short-haul services will be changed to include business-class seats for both the turboprop and jet operations.

 

The turboprops will continue to fly from Subang, while the jet operations from KLIA will serve short-haul routes within a three to four-hour flying radius. Since the new airline would be premium short-haul carrier, the Firefly operating model will change and so will the service quality and branding. The cost of the change, according to the source, would be minimal because the “structure is already there”.

 

Still, there be may room for airfares to go up because the new short-haul airline will be a premium product. Another source said “we would like to think it is value for money”.

 

It is also learnt that the MAS board had approved a new organisational structure, which was proposed by new managing director Ahmad Jauhari Yahya. The source said the number of heads now reporting to Ahmad Jauhari would be reduced from 14 to eight, and with that, “we are seeing a leaner structure for better coordination”.

 

The board is also said to have reaffirmed MAS' entry into the oneworld alliance as it saw “more upside” to such a move than otherwise.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/28/business/9588251&sec=business

 

By Jan 2011, wow 2 months suffering then... and heard that? no overlapping, means like KUL - KCH route will be fully handled by MH and AK, not unless MH would handover it to the new premium airlines...

[Ikman Ikreza 0]

MAS new short-haul premium carrier will take off by January

By B.K. SIDHU

bksidhu@thestar,com.my

 

PETALING JAYA: Malaysia Airlines' (MAS) new short-haul premium carrier will take off by January. However, it is not likely to be named Sapphire, as indicated earlier. Instead, said a source, the Firefly brand might be retained or there would be a new brand incorporating the MAS name.

 

 

If not Sapphire, I suggest MASfly should be better with new tagline "U must fly MASfly for the new experience"

[CH Teo 0]

With Firefly social media team said statement will be released in due course and Dato TF had visited FY yesterday; plus the news above, just wait for their vivid announcement regarding their rationalisation within the group...

[Johan Z 0]

I don't understand why you need a new name for the short haul premium airline. Firefly is a nice name and also well known within Malaysia. Rebranding into a new name costs a lot of money and adds more confusion. Just change the name slightly like FireflyPlus or FireflyXpress to differentiate from former brand.

Thank God no Sapphire!

My 0.02 cents.

[Tamizi Hj Tamby 1]

Why don't just name it just like they did with MASwings; that should be easy.

 

January 2012? So what will happen to all FY 738 routes prior to Jan 2012? Peoples are began to 'hoo-haa' ing about it.

[Mike P 0]

Why don't just name it just like they did with MASwings; that should be easy.

 

January 2012? So what will happen to all FY 738 routes prior to Jan 2012? Peoples are began to 'hoo-haa' ing about it.

 

KIV, for reconfiguration to business class and economy class segments. Probably would expect some AOVD on board too like MH's B738...

[Ikman Ikreza 0]

I don't understand why you need a new name for the short haul premium airline. Firefly is a nice name and also well known within Malaysia. Rebranding into a new name costs a lot of money and adds more confusion. Just change the name slightly like FireflyPlus or FireflyXpress to differentiate from former brand.

Thank God no Sapphire!

My 0.02 cents.

 

Like as TF said, it's rebranding. It seems not just to kill Firefly jet operations but kill Firefly name/brand in Malaysia aviation. If TF can change QPR name, sure he did. It's happend to most of the company in Malaysia when new chairman/board took over.

[Sharil Abdul Rahman 0]

If not Sapphire, I suggest MASfly should be better with new tagline "U must fly MASfly for the new experience"

 

You mean "You MASFly with Us. All the time"

 

[Tamizi Hj Tamby 1]

KIV, for reconfiguration to business class and economy class segments. Probably would expect some AOVD on board too like MH's B738...

 

 

Hmm,you do have a point there.Thanks for pointing it out,Mike

 

You mean "You MASFly with Us. All the time"

 

 

Hehehehe

[flee 5]

I don't understand why you need a new name for the short haul premium airline. Firefly is a nice name and also well known within Malaysia. Rebranding into a new name costs a lot of money and adds more confusion. Just change the name slightly like FireflyPlus or FireflyXpress to differentiate from former brand.

Thank God no Sapphire!

My 0.02 cents.

You need to go back to Firefly's history a bit. It was originally set up as a community airline flying turboprops (Fokker F-50) out of Penang. Then it expanded its fleet and opened its hub in Subang with ATR72-500 aircraft.

 

Somewhere along the line, it got a bit confused and started LCC jet services from KLIA and JHB. So it is now a community airline and an LCC.

 

What the new MAS management should do is to clearly project what each brand means - Firefly (community airline), MAS (premium regional/long haul airline), Sapphire or its new name (premium short haul airline). That way, there will be no confusion for customers.

 

What the MAS management must also do is to clearly define the business model for each of these three airlines so that they do not stray into each other's market segment.

 

After the restructuring, everyone, from management to staff to customers, should have a clear idea what each airline is supposed to be all. Those who want to be pampered, have aerobridges, full service from start to finish - should take MAS or its new short haul airline. Those who want to travel short haul from Subang should take Firefly. Those who want cheaper fares but no aerobridges nor food and other service can take AirAsia.

 

There we go - everything is nicely compartmentalised...

[Johan Z 0]

You need to go back to Firefly's history a bit. It was originally set up as a community airline flying turboprops (Fokker F-50) out of Penang. Then it expanded its fleet and opened its hub in Subang with ATR72-500 aircraft.

 

Somewhere along the line, it got a bit confused and started LCC jet services from KLIA and JHB. So it is now a community airline and an LCC.

 

What the new MAS management should do is to clearly project what each brand means - Firefly (community airline), MAS (premium regional/long haul airline), Sapphire or its new name (premium short haul airline). That way, there will be no confusion for customers.

 

What the MAS management must also do is to clearly define the business model for each of these three airlines so that they do not stray into each other's market segment.

 

After the restructuring, everyone, from management to staff to customers, should have a clear idea what each airline is supposed to be all. Those who want to be pampered, have aerobridges, full service from start to finish - should take MAS or its new short haul airline. Those who want to travel short haul from Subang should take Firefly. Those who want cheaper fares but no aerobridges nor food and other service can take AirAsia.

 

There we go - everything is nicely compartmentalised...

 

I got what you mean. Everyone knows Firefly started a turboprop airline from Subang and PEN. But my point is considering the ailing state of MH, new name means new uniform/ livery and other things come with it, should be minimised/avoided. I'm glad however they will use Firefly or MAS affix, it's more recognisable.

[Mike P 0]

I suppose Air Asia is the one overall has maintained a good branding. Its original name, will never be stripped off in aviation market.. and its colour, the Red, will never be stripped off too.. Air Asia, Air Asia X, Indonesia / Thai / Philippines / Vietnam / Japan Air Asia... it's simple and easy.. all can be booked on the same webpage and routes can be overlapped between the parent airlines and sister airlines where customer can choose the preferred time and operator.

 

Tune Hotels... Tune Talk... also illustrated in Red Colour and just stick to Tune... how easy, simple and cost effective.

[flee 5]

I got what you mean. Everyone knows Firefly started a turboprop airline from Subang and PEN. But my point is considering the ailing state of MH, new name means new uniform/ livery and other things come with it, should be minimised/avoided. I'm glad however they will use Firefly or MAS affix, it's more recognisable.

MAS is a GLC - it can plan for the long term. Short term cost cutting may lead to long term pains. If something is worth doing, better do it well so you don't have to do it again and again!

 

I suppose Air Asia is the one overall has maintained a good branding. Its original name, will never be stripped off in aviation market.. and its colour, the Red, will never be stripped off too.. Air Asia, Air Asia X, Indonesia / Thai / Philippines / Vietnam / Japan Air Asia... it's simple and easy.. all can be booked on the same webpage and routes can be overlapped between the parent airlines and sister airlines where customer can choose the preferred time and operator.

 

Tune Hotels... Tune Talk... also illustrated in Red Colour and just stick to Tune... how easy, simple and cost effective.

If the management has a clear idea of its strategic direction, the businesses can stay in focus.

 

As you have mentioned above, there is no confusion what the AirAsia group is all about - they know what businesses they are in and who to target as their customers.

[flee 5]

Sarawak Wants Federal Government To Consider Turning MASWings Into Regional Airline

 

KUCHING, Sept 28 (Bernama) -- Sarawak wants the federal government to explore the possibility of turning MASWings into a regional airline not only for the rural air services in Sarawak and Sabah but also within the BIMP-EAGA region and beyond following the collaboration between Malaysia Airlines (MAS) and AirAsia.

 

State Tourism and Heritage Minister, Datuk Amar Abang Johari Tun Openg, said an alternative regional connectivity would fill the vacuum left by MAS' unit, Firefly, which was expected to cancel all its current flights to Sarawak with the proposed air rationalisation exercise.

 

"The Sarawak government is ready, through my ministry, to try its best to position the tools that can enhance the tourism industry's growth because we want do not want to be left behind," he said at the MAS/MASWings Hari Raya open house here Wednesday.

 

Abang Johari said MASWings, whose rural air operations in Sabah and Sarawak were being subsidised by the government until its contract ceased in 2017, could take up the challenge to become a competitor to other airlines.

 

"Apart from the East Asean Growth Area of Brunei, Indonesian, Malaysia and the Philippines, it could also look at possible routes connnecting Sarawak to Hong Kong, Bangkok, Bali and even Australia," he said.

 

Currently, MASWings operates with a fleet of 10 ATR aircraft and four Twin Otters.

[CH Teo 0]

Only one sentence to comment: Hope the state government really have the power to influence and lobbying for more flights for East Malaysians at affordable / valuable rates...air connectivity sounds more important here as the land connectivity is not as good as in West Malaysia...

 

and MASwings' plans for flying within the BIMP-EAGA region had been out for almost two years, but looks like further delays can be expected for those who anticipated the operations to be started soon...seems they are adding some more flights for RAS for the ATR 72 sectors from this Oct 30...

[Mike P 0]

I think it is a good proposal. Many people perceived the East Malaysia, especially the Sarawak has been neglected all the time. MasWings could be deployed and utilised to connect the world to Borneo. Besides, by introducing some popular traffic could certainly cover some rural services loss.

[alberttky 0]

Sarawak on the losing end

TWO games of high-stakes musical chairs are being played right now.

 

The first is the much talked about (but ultimately less interesting) state Cabinet reshuffle.

 

Personally, I doubt the reshuffle will have much of an impact on most Sarawakians’ daily lives.

 

The state Cabinet operates — as Barisan Nasional politicians are always so eager to proclaim — “based on consensus”. As such, one minister taking over from another is unlikely to cause significant policy or performance shifts.

 

Now, there is another game of musical chairs in progress, which involves billions of ringgit, and, like the reshuffle, will come to an end this week.

 

The flight rationalisation between Malaysia Airlines (including its subsidiaries MASWings and Firefly) and AirAsia is strongly rumoured to have been, more or less, hammered out over the Hari Raya holidays. Only the nuts and bolts are still being worked on.

 

Within MAS, high-ranking staff, including state managers, have been told to expect “a big internal announcement” by the end of this week.

 

It is all but certain that MAS’ two-year-old affordable wing Firefly will cease jet aircraft operations by year-end.

 

The low-cost air travel segment in Malaysia will once again overwhelmingly be AirAsia’s.

 

With a 10% stake in AirAsia, the government can ill afford to let the company be squeezed of profits. Should speculation prove true, Firefly will be left with only turbo-prop routes.

 

Indeed, at Firefly online’s “News Releases” section, the most recent announcement is on next month’s delivery of two ATR72-500. The new turbo-prop ATRs will serve Subang-Kuantan flights.

 

The website makes zero mention of new jet engine aircraft routes.

 

Make no mistake, this flight rationalisation between MAS and Datuk Seri Tony Fernandes’ super-sized airline is the most extensive in Malaysia’s aviation history.

 

Fernandes’ helm of the affordable airline is one for the record books.

 

MAS, like other full-service carriers worldwide, was hit hard by 9/11 and the subsequent decade of fuel price fluctuations. Inconsistent management and government flip-flops are equally to be blamed for the national air carrier’s lousy bottom line.

 

Prior to the share swap deal, animosity between MAS and AirAsia had been building up over the years. Their ad campaigns took pot shots at one another. “Cheeky” ads were often vicious in nature.

 

During a media trip to AirAsia’s headquarters at KLIA’s LCCT early this year, I heard one memorable quip on the short lifespan of firefly insects.

 

“They’ve doomed their airline by calling it that,” said the AirAsia personality, who shall not be named here.

 

“If I were them, I’ll call it Dragonfly, which lives a lot longer,” he said.

 

AirAsia came into this round of flight rationalisation with the upper hand. The speed with which Firefly has started cancelling its flights reflects this.

 

The share swap not only caught newsmen by surprise, but also high-ranking government officials.

 

In early August, state Tourism and Heritage Minister Datuk Amar Abang Johari Tun Openg was speaking confidently about the Sarawak and Sabah governments’ plan for MASWings to become a sub-Asean airline.

 

Johari said that MASWings would expand with routes from Kuching to Brunei and also between Kota Kinabalu and the Philippines.

 

He told reporters back then that the talks were in the final stages.

 

Johari even enthused about the two state governments’ tourism plans for MASWings to become a full-fledged sub-Asean airline by 2013.

 

That year would be significant, the minister added, because it would be the 50th anniversary of the formation of Malaysia.

 

But what happened within a month of Johari’s announcements?

 

Firefly’s Kuching-Johor route became the first casualty of the rationalisation.

 

And when did that cancellation come about? On the eve of Malaysia Day on September 15.

 

There are two things to ponder about here. The first is beyond obvious. To effectively cancel a route on Malaysia Day can only mean the decision-makers in Peninsular Malaysia think very little of Sarawak’s tourism industry.

 

This week, Firefly quietly axed another route, and again, it is from Sarawak. The Ku-ching-Kuala Lumpur route will end Oct 31.

 

Sarawak is considered as a weak link in Malaysia’s tourism industry and we will continue to be so for as long as there are no good air links.

 

(The phrase “no man is an island” comes to mind.)

 

In this round of aviation musical chairs, Sarawak will the biggest loser without chairs when the music ends.

 

So, in regard to the any-time-now Cabinet reshuffle, what then will the Cabinet members do about this latest tourism setback for Sarawak?

 

http://thestar.com.my/news/story.asp?file=/2011/9/28/sarawak/9584534&sec=sarawak

 

Sometimes I fail to see why Sarawak government pray and hope for more airlines to operate into the state and bring in more tourists, moan and cry when airlines pull out. Isn't Sarawak rich enough to set up their own airline if they deem so desirable to draw tourists into the limited-attraction state? Oh yeah... of course... incompetent politicians I suppose...

[Mike P 0]

Sometimes I fail to see why Sarawak government pray and hope for more airlines to operate into the state and bring in more tourists, moan and cry when airlines pull out. Isn't Sarawak rich enough to set up their own airline if they deem so desirable to draw tourists into the limited-attraction state? Oh yeah... of course... incompetent politicians I suppose...

 

Thanks to Taib!

[alberttky 0]

Thanks to Taib!

 

Not a concern to him obviously as he's flying in style in his new Bombardier Challenger 605. Guess he must have gotten bored with his Citation X.

[Mike P 0]

Not a concern to him obviously as he's flying in style in his new Bombardier Challenger 605. Guess he must have gotten bored with his Citation X.

 

no idea what he was doing behind... he basically controls everything about Sarawak and the every piece of land except the cemetery.

[flee 5]

no idea what he was doing behind... he basically controls everything about Sarawak and the every piece of land except the cemetery.

Sabah and Sarawak have under developed roads/highways and railways. I think that having better roads and railways would be more cost effective and sustainable in the long term. Flying to RAS airstrips should be seen as a short term solution pending the arrival of land transport.

[alberttky 0]

Sabah and Sarawak have under developed roads/highways and railways. I think that having better roads and railways would be more cost effective and sustainable in the long term. Flying to RAS airstrips should be seen as a short term solution pending the arrival of land transport.

 

I've given up hope with this state government. It'll take an eternity for things to happen.

[alberttky 0]

Community airline begins silent cancellation, leaving passengers and tour operators fuming

 

KUCHING: Firefly, Malaysia Airlines’ (MAS) community airline, has apparently begun cancelling some of its flights to and from Sarawak since yesterday.

 

This is ahead of Firefly’s rumoured pullout from the state by end of October.

 

The Star learnt that at least one Kuching-Kuala Lumpur flight was cancelled late last night, with passengers put onboard a MAS flight instead. The unannounced move has left more than a few ticket holders unhappy.

 

“My Kuching-KL flight yesterday evening was cancelled after I booked it online just a few days earlier,” said Ng CH in an e-mail.

 

“I read in newspapers about the possible cancellations. When I checked (with Firefly), I was informed my flight had indeed been cancelled. They transferred me to a MAS flight, which was departing at about the same time.”

 

A senior MAS official confirmed that Firefly flights involving Sarawak without enough passengers, “to break even financially”, were being cancelled.

 

“The standard operation procedure is like this: When a last minute cancellation occurs because of too few passengers, then, preferably, affected ticket holders will be placed on the next Firefly flight. But when the (departure) time is too far apart, a FIM will be issued,” he explained.

 

FIM is an aviation terminology for “Flight Interruption Manifest”. It is normal for airlines to issue FIMs, especially among affordable airlines.

 

“Once the FIM is issued, passengers can be put onboard MAS,” the official added.

 

The Star was unable to determine how many of Firefly’s Kuching-KL-Kuching flights have been cancelled, or how many will be cancelled in the coming weeks.

 

Of the four Kuching-KL flights listed on Firefly’s website for today, only two evening flights are priced and with tickets bookable online.

 

For tomorrow, Firefly has three Kuching-KL flights on sale. For Sunday, five are on sale; but for Monday, there are only three flights again. Efforts to contact Firefly for comments on its scheduling were unsuccessful. Talk of Firefly being downsized surfaced after the MAS-AirAsia share swap deal was announced in August.

 

During Firefly’s peak around mid-year, the airline was flying multiple daily flights between Kuching-KL, Kuching-Johor and Sibu-KL. It had a reported load factor of 70%.

 

But Firefly is now all but certain to cease flights from Sarawak and Sabah to Peninsular Malaysia by the end of October. On Malaysia Day on Sept 16, the Kuching-Johor sector became the first Firefly route to be axed.

 

According to the MAS official, it was very likely all three Firefly routes involving Sarawak would be terminated by Oct 31.

 

He said this had “more or less been confirmed internally (with MAS and its subsidiaries)”, pending an official public announcement.

 

The public and travel agents have reacted unfavourably to the developments. Travel agents were unhappy about Firefly’s “silent cancellations”.

 

Although Firefly tickets are still available for purchase, tour agents have by and large stopped putting customers on board those flights.

 

Sarawak Tourism Federation (STF) Sibu chairman Frankie Ting said his customers had been advised to only purchase AirAsia tickets.

 

“There’s only two Sibu-KL options: There’s Firefly, which we are not buying anymore, and then there’s AirAsia.

 

“So what choice do we have (but AirAsia)?” Ting said.

 

Ting felt that any possible cancellation had to be announced earlier.

 

“Since there is no MAS Sibu-KL flight, then we can only buy AirAsia tickets.

 

“But as you know, the later you buy an AirAsia ticket, the more expensive it is. My customers with Firefly tickets wanted cheap airfares in the first place.”

 

A tour agent in Miri, Albert Sim, who is also a member of STF, said: “In a way, I think Miri people are lucky Firefly never flew to us. What a hassle they’ve caused.

 

“Why have they not issued any statements or at least an explanation to travel agents? As a result, there’s so much inconvenience and misunderstanding.”

 

http://www.thestar.com.my/news/story.asp?file=/2011/9/30/sarawak/9603409&sec=sarawak

[Waiping 12]

So much for a FAX machine that didn't work. Birds of a feather.