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MAS and AirAsia Shares Swap

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I flew to CPT last week for a holiday. I am not sure if I wanted to write a TR because it is just a normal 12 hours flight on MH's B744.

 

Load on both sectors was incredibly high (100% for KUL-CPT and more than 90% for CPT-KUL in the Economy Class). Interesting observation - a significant number of travelers are Chinese national who came from/heading to China and the majority was on their way to/from EZE. Not many people disembark or join the flight in CPT. KUL-CPT sector was served by a Spanish speaking MH stewardess from Mexico named Adriana, who made all the Spanish announcements for the flight. CPT-KUL sector was joined by a male mandarin speaking steward whose presence was actually a saviour to the MH crew on that flight. Chinese passengers to/from China are quite a PITA - they are smelly, loud and ignorant. Sorry to say but it is true.

 

Understood what failed the route is not because of load nor pricing (return ticket to CPT in Economy Class is sold at the range of RM 7,000 which is high when compared to other competitors), but rather the restriction of frequency by the South African government (MH is stuck with only 2 weekly flight), the far distance (to EZE) and the current jet fuel price (since MH is operating a fuel inefficient quad engine aircraft on the route). And of course, MH has a larger excess luggage than any other normal legacy airlines.

 

I think I am lucky to be able to fly the route, although halfway, before it is being cut. Fellow member Fashni M did flew the route all the way to EZE.

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Sad day :rolleyes:

Also sad is we didn't see this coming sooner :(

Saddest part though is some of us were naive enough to entertain belief that things could be handled with decency - I stand amongst the naives :)

Edited by BC Tam

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IMHO, I think they are cutting the routes from BKI for a reason, perhaps to make KUL a main hub or to expand MASWINGS operations further.

 

As for the South to South connection, I think they would remain after all, knowing our circumstances and history repeats itself. Perhaps retaining CPT and/or JNB might be good, but too bad. DXB cut ? Sad to hear too but IY is still operating that route, so there will be two carriers on that route. EK is smart, at the expense of MH but we need it for KUL to survive. My two cents worth. :rolleyes:

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is that MH only Asian carrier that fly to EZE?? :help: If MH cut their route to EZE....no more asian carrier at EZE... :(

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Don't be sad - this is a necessary thing to do before MAS becomes great again. Just look at JAL, they underwent bankruptcy protection, cut so many routes and one third of their staff. Now they are making profits of over US$ 1b. Soon, they will talk about expanding again.

 

MAS can be like that too. First they must right size the business and get rid of the bad things in the company. Next they need to focus on getting the aircraft fleet and product right. After that they should ply the right routes, those that give good yields. Then they can start making profits again. Finally, they can expand once more - but this time, they will be a much stronger airline.

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In February, MAS would stop flying to Johannesburg, Cape Town and Buenos Aires, they said. As for the pullout from the Dubai sector, this will be done gradually, first with the reduction of weekly flights and those via Karachi and Damman.

 

The sources claimed that the airline might add Abu Dhabi as a destination in place of Dubai, a route served by Emirates several times weekly, but whether it was a wise move would remain to be seen as Abu Dhabi is an equally competitive route.

 

The sources added that choosing Kota Kinabalu as a hub was not a strategic move in the first place and now the airline had to reverse the decision. This is the second time that MAS has abandoned the idea of using Kota Kinabalu as a hub. The first attempt was in 2003.

Some comments from me based on the article:

 

On DXB - it is understood that MH will withdraw entirely from DXB. But I am not quite clear about the explanation given for KHI and DMM. Will these 2 being served when DXB is gone? Both KHI and DMM are currently being served with a mere 2 weekly frequency.

 

On adding AUH - I do not think it is a good decision. Etihad maybe not a behemoth threat like EK but still they have more than a daily frequency out of KUL and offer better inflight product in general. MH even appointed Etihad recently as one of Enrich's partner airlines where we Malaysians can earn Enrich miles by flying Etihad. For Enrich miles earners, if we can earn the miles with Etihad, why would we fly MH? Apart from better inflight product, Etihad has proven to be significantly cheaper than MH to everywhere. A lot of fare classes in Economy Class presumably inclusive those discounted fares is given 100% Enrich miles.

 

On cancelling the BKI hub yet AGAIN - Really pity! Understood the flip flopping is due to change in management because I think some of the newly launched routes out of BKI by the previous management is actually doing well. BKI-PER vv comes to mind.

 

 

is that MH only Asian carrier that fly to EZE?? :help: If MH cut their route to EZE....no more asian carrier at EZE... :(

No. QR serves EZE via GRU on a daily basis and their fares are so much cheaper than MH. My best friend, who is a rising star in the Ministry of Health in Putrajaya is heading to Buenos Aires in late November for a conference. I was surprised when he told that the government is giving him a QR ticket instead of MH. Now at least I was given some indications that some Ministries in Putrajaya do control their travelling spending.

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MAS can be like that too. First they must right size the business and get rid of the bad things in the company. Next they need to focus on getting the aircraft fleet and product right. After that they should ply the right routes, those that give good yields. Then they can start making profits again. Finally, they can expand once more - but this time, they will be a much stronger airline.

Try selling that to the tourism people who have sunk in money on infrastructure here

Try selling that to Sabah Tourism and Malaysia Tourism who have sunk in money over the years

Try selling that to the foreign tour companies who would have put in effort and money to help sell our products - see if they will return

The only hope may be that other (possibly foreign) airlines will be allowed to pick up the slack cause by MH's 'right-sizing'

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On cancelling the BKI hub yet AGAIN - Really pity! Understood the flip flopping is due to change in management because I think some of the newly launched routes out of BKI by the previous management is actually doing well. BKI-PER vv comes to mind.

Maybe it is for better fleet utilisation. It may not be efficient having a hub there when the aircraft stationed there is not worked hard enough.

 

Try selling that to the tourism people who have sunk in money on infrastructure here

Try selling that to Sabah Tourism and Malaysia Tourism who have sunk in money over the years

Try selling that to the foreign tour companies who would have put in effort and money to help sell our products - see if they will return

The only hope may be that other (possibly foreign) airlines will be allowed to pick up the slack cause by MH's 'right-sizing'

No pain, no gain.

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Flee's citing of the JAL example is absolutely spot-on. MAS would do fine to emulate JAL ...

 

But it is one huge bitter pill that JAL swallowed. It made all the cuts where such cuts are necessary - management, staff strength, fleet, routes and returned to basics. Its corporate identity even returned to basics - retaining only the tsuru (crane).

 

Is MAS able to do the same? I keep hearing belt-tightening and prestige at the same time and in spite of several initiatives such as BTP, WAU or CCF, I have not seen real thorough measures that shows the airline is ready for a JAL-type reinvention.

 

Introduction of the A380 at a time when the airline is in dire straits, facing plunging traffic, falling yield, rocketing oil prices, stiffer competition and coping with a wolf in sheepskin within its board is quite a challenge in itself.

 

KC Sim

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MAS should downsize its staff by getting rid of rotten apples, particularly those in the management... including TF as he doesn't seem to offer any benefit to MAS, more like a thorn and sabotage job.

 

I don't think they should downsize their routes though.. Their network is not big to start with.. If they cut routes, they should open new ones. Otherwise what are they going to do with the planes?

 

MAS can emulate JAL.. but the Japanese got rid of their age old ruling party first whom they felt to be incompetent and corrupt.. Maybe we should get rid of BN first and see if there will be meaningful changes..

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Malaysia Airlines Cancels South Africa/Argentina Service; Reduce Dubai & Axe Dammam in W11

by JL

3rd Update at 0335GMT 10NOV11

 

Note at time this post goes to press, Malaysia Airlines is gradually updating its GDS timetable and inventory listing.

 

Within the past 20 minutes (10NOV11 local time), Malaysia Airlines has updated its GDS timetable and inventory listing, which sees the cancellation of service to South Africa and Argentina from 01FEB12.

 

Service to Dubai will see gradual service reduction in 2 phases: Reduceing from 7 weekly to 4 weekly from 15NOV11, and further reduce to 2 weekly by 13JAN12. From the same date (13JAN12), 2 weekly service to Dammam in Saudi Arabia is also cancelled

 

Reservation for these flights has been closed and Zero’d out.

 

Schedule after 15NOV11:

 

Kuala Lumpur – Dubai – Dammam Service operates until 11JAN12

MH154 KUL2359 – 0330+1DXB0515+1 – 0540+1DMM 332 25

MH155 DMM1455 – 1710DXB1855 – 0605+1KUL 332 36

 

Kuala Lumpur – Karachi – Dubai

MH160 KUL1240 – 1545KHI1645 – 1800DXB 330 14

MH161 DXB1915 – 2210KHI2320 – 0800+1KUL 330 14

 

Kuala Lumpur – Johannesburg Service operates until 31JAN12

MH203 KUL0120 – 0550JNB 772 246

MH204 JNB1340 – 0610+1KUL 772 246

 

Kuala Lumpur – Cape Town – Buenos Aires Service operates until 29JAN12 (last flight from Cape Town to KUL is 30JAN12)

MH201 KUL0120 – 0650CPT0835 – 1245EZE 744 37

MH202 EZE2320 – 1215+1CPT1345 – 0700+1KUL 744 37

 

http://airlineroute.net/2011/11/09/mh-w11cxld/

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BKI HND, BKI ICN is to be axed from 01FEB12. Currently waiting for MH to Zero out every class of service. Currently some dates after 01FEB12 showing J/Y/B/H available but the rest is closed.

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BKI HND, BKI ICN is to be axed from 01FEB12. Currently waiting for MH to Zero out every class of service. Currently some dates after 01FEB12 showing J/Y/B/H available but the rest is closed.

 

So leaving HKG, TPE and PER?

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From rumours I heard, they also will slowly cut down and closed BDO and Vietnam route soon..

 

BDO may be reasonable... but Vietnam? That's really mad...

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As they are reviewing the viability of all routes, I would say that any route can be axed until we know that the review is complete. We will have to wait for an announcement from MH regarding this, plus any announcements that may be made for new routes.

 

I also have a feeling that they will accelerate the retirement of the B734s and B744s next year.

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Kuala Lumpur – Johannesburg Service operates until 31JAN12

MH203 KUL0120 – 0550JNB 772 246

MH204 JNB1340 – 0610+1KUL 772 246

 

Kuala Lumpur – Cape Town – Buenos Aires Service operates until 29JAN12 (last flight from Cape Town to KUL is 30JAN12)

MH201 KUL0120 – 0650CPT0835 – 1245EZE 744 37

MH202 EZE2320 – 1215+1CPT1345 – 0700+1KUL 744 37

 

http://airlineroute.net/2011/11/09/mh-w11cxld/

 

 

I bet AK/D7 will take over JNB and CPT <_<

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Not just axe unprofitable routes but MH will be relocating it's HQ from Subang to KLIA by next year, reason for centralisation operation between both parties Malaysia Airlines and AirAsia. Rumours existing Subang only use for Maintenance, repair, and operations (MRO).

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I bet AK/D7 will take over JNB and CPT <_>

They do not have the planes to fly these routes at the moment. Only the A340s can do this route and they are both used for the ORY and LGW routes already. So no spare aircraft that is capable.

 

I don't think they want to lease the B744 from PMB!

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